Income Tax on dividend

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Expert
360 Points Posted on 15 June 2022

Dear Team,

What is the Income tax rate on dividend received by Indian company from foreign subsidiary company..?

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On 15 June 2022 at 18:26 Report
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This discussion clarifies the income tax rate applicable to dividends received by Indian companies from their foreign subsidiaries. Previously, Section 115BBD of the Income Tax Act imposed a 15% concessional tax rate. However, this provision is no longer applicable from assessment year 2023-24 onwards. The specific tax rate may depend on factors like stake percentage and whether it falls under sections 111A/112AA.

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CFO- at NHTF
58280 Points Posted on 15 June 2022
10/15% depends if it is covered under 111A/112A
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On 15 June 2022 at 18:47
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Chartered Accountant
86505 Points Posted on 15 June 2022
At present, dividends received by Indian companies from their foreign subsidiaries are subject to a concessional tax rate of 15 per cent under Section 115BBD of the Income Tax (I-T) Act. The provisions of this section shall not apply from assessment year 2023-24.
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On 15 June 2022 at 20:26
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Profession
28271 Points Posted on 16 June 2022
Only the stake percent you hv not mentioned. It's 26% or more in nominal value of equity shares(specified foreign company).
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On 16 June 2022 at 07:23

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