Why dividend is exempted from tax
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Dividend
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bcz the before payment tax on div is paid by company itself in the form of CDT.
bcz before payment, tax on div is paid by company itself in the form of CDT.
Dividend is the payment made by a company to its shareholders or members out of the profit earned by the company. The company is liable to pay dividend distribution tax @ 12.5% in respect of dividend so declared. So, such dividend is exempt from tax in the hands of the shareholders to avoid the double tax treatment.
but it is not exempted if payer co. is foreign co.
Yes Agreed with you.
since foreign dividend received is taxable in the hands of indian resident assessee
Question says why it is exempted hence it must be indian company
Thanks sir
exempt up to 10 lac in AY 2017-18
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