Corporate Dividend Tax

'A' is an investing Co. whose main business is only investing the amount in other company's shares. It receives dividend from other companies after cutting down CDT. Now its turn to pay dividend to its share holders.

Is it liable to cut CDT & pay dividend to its share holders?

If so, there will be double taxation on the same income?

clarify my doubt......

Replies (6)

The company has to pay CDT.

while calculating only dividend received from subsidiary company is not liable to pay CDT.(with certain conditions)

what about the cascading affect here?

yes

CDT applicable all divedend paid including Dividend received by company.

Vishnu Priya,


You are pretty correct about double taxation and the same has been provided in the Income Tax under a section named 115-0(1A), but only as far as holding-subsidiary relation is concerned as under:

[(1A) The amount referred to in sub-section (1) shall be reduced by,—

                (i)   the amount of dividend, if any, received by the domestic company during the financial year, if—

         (a)   such dividend is received from its subsidiary;

        (b)   the subsidiary has paid tax under this section on such dividend; and

         (c)   the domestic company is not a subsidiary of any other company :

                       Provided that the same amount of dividend shall not be taken into account for reduction more than once;

Thank you nicky

thanks

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details