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Dividend Subsidiary to Holding company

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What will be tax treatment for dividend received from subsidiary to holding company?
Replies (4)

If DDT tax is paid then it will be exempt in the hands of holding company, and at the time declaration of dividend by holding company, DDT will be paid on after deducting amount of dividend received from subsidiary company

and what will be income tax rate in the hands of holding company for dividend received from subsidiary company
When any resident assessee received dividend from domestic company in aggregate more than Rs. 10 lac then recipient is required to pay tax as per Sec 115 BBDA at 10% on dividend in excess of 10 lac.

However sec.115BBDA shall not be applicable w.e.f.01.04.2018 to following:

a) Domestic Company
b) A fund or trust or institution or any university or other educational institution or any hospital referred u/s 10(23C)
c) A trust or institution registered u/s 12A or 12AA.
okay so we would have to pay 30% income tax?


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