Dividend distribution tax

If a domestic subsidiary has paid DDT on dividend distributed u/s 2(22)a and holding company is paying Dividend u/s 2(22)c ....ca n dividend on which tax is paid 2(22)a can be reduced from 2(22)c as per 115-O(1A)?????
Replies (3)

Section 2(22)(a) defines amount distributed by company to the extent of its accumulated profits by release of assets.

Section 2(22)(c) defines distribution of amount as dividend (to the extent of available accumulated profits) at the time of liquidation of the company.

Section 115-O(1A) states that for computation of DDT, any dividend received from the subsidiary shall be reduced subject to following conditions:

- it should have been received in the same financial year in which the holding declares the dividend.

- subsidiary must have paid DDT on the amount declared and disbursed

- same dividend cannot be taken as reduction for more than once   

So answer is can be reduced or not???

Yes - subject to above conditions.

quoted from previous post.

"for computation of DDT, any dividend received from the subsidiary shall be reduced"

 

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