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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Divided Distribution Tax
Replies (6)
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.
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
@ 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???
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???
In partnership firm the partners makes investment and do the business and earn income but in case of company it is different.
DDT is applicable u/s 115 O (with gross up concept )
DDT is applicable u/s 115 O (with gross up concept )
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