Double Taxation

only due to this dividend distribution tax dividend is exempt in hands of receiver.........

I AGREE WITH THE MADHUR

According to me Government is trying to apply all taxes at the place where income generates so that there willbe lesser possibility of hiding the income from taxes.....and there are lots of places where double taxation is coming...but then also tax has to be deducted.....am i ryt????

Madhur and Ameet pls refer quest once more..

Shudhanshu you tried well, but you are in next half of the answer, accordin to my question that government is collecting tax at double times as :

 - Income Tax from Company and

 - Dividend Distribution Tax from the Company on behalf of Share Holders.  Wat is the need to government to collect once more as dividend distribution tax when it already collected from compan as Income Tax..??

What i can say maybe coz government is getting tax two times that can be a reason and this will increase its revenues

i dont think its double taxation bcoz

bcoz when company pay dividend without any DDT then it will be taxable in the hands of Share holders so company is just paying our tax and remained amount to us as a tax free dividend

Vipul pls refer quest once more...

Sudhanshu what you said is 200% right, but on what basis the government can charge once more as DDT on Already taxed income..?? When they are not doing it in case Partner Ship, hope you’ll know that share income from partnership is exempted from tax.

What right does the government have..??

wat sec 115-0(2) say na inaddition to the income tax , the company has to pay DDT                                       Sec 4 says that subjec t to the provisions of this Act     and hence tax levy on the total income    Supreme Court case law Court clarify that  it does not amount to double taxation at all. 

and its not like that if the company paid DDT the dividend is exempted in the hands of shareholders bcoz it is levied on the company and not on shareholders ............