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Divided Distribution Tax

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12 Points Joined July 2017
Company pays tax on its profit, but whereas when company distributes its profit to it's Share holders, its again taxed as DDT.

Isn't this double taxation??
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On 09 April 2020 at 09:17 Report
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25 Points Joined April 2020
No it is not double taxation. The income distributed to shareholders is out of the profits earned by the company. In this the profit is not earned directly by shareholders. They are only investing their money.
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On 09 April 2020 at 10:03
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186 Points Joined August 2019
DDT is a tax on dividends the incidence of which is shifted to companies from shareholders. Now, w.e.f April 1, 2020, DDT is abolished and dividends are taxed in the hands of shareholders
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On 09 April 2020 at 10:42
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12 Points Joined July 2017
@ Vinay

you can't say that shareholders just invest. Ambani holds shares of Reliance, whereas he doesn't hold as investments.

See, when partenership firm Distributes profit, why doesn't this same concept of DDT apply???
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On 09 April 2020 at 20:31
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25 Points Joined April 2020
In partnership firm the partners makes investment and do the business and earn income but in case of company it is different.
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On 09 April 2020 at 20:38
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Chartered Accountant
12739 Points Joined December 2016

DDT is applicable u/s 115 O (with gross up concept ) 

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On 09 April 2020 at 22:23
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Chartered Accountant
12739 Points Joined December 2016

DDT is applicable u/s 115 O (with gross up concept ) 

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On 09 April 2020 at 22:24

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