Preference Share Dividend

Its also exempt....

Thank you for you valuable answer 

But May i know under which section or provision made you and this?

That It is exempt

Will be in wait of the answer thanks again

Dear Jalpesh,

Preference dividend received from a Domestic Co. shall be exempt u/s 10(34) reads as under

     [(34)   any income by way of dividends referred to in Sec 115-O.

  [Explanation.—For the removal of doubts, it is hereby declared that the dividend referred to in section 115-O shall not be included in the total income of the assessee, being a Developer or entrepreneur;]

Extract of Sec 115-O is as under

115-O. (1) Notwithstanding anything contained in any other provision of this Act and subject to the provisions of this section, in addition to the income-tax chargeable in respect of the total income of a domestic company for any assessment year, any amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2003, whether out of current or accumulated profits shall be charged to additional income-tax (hereafter referred to as tax on distributed profits) at the rate of [fifteen] per cent.]

The term Dividend as defined under Sec 2(22) (a) uses the words "shareholder" & not equity shreholders.

So, the term Dividend includes both for Equity as well as Preference.

Thanks friend

It cleared my view 

I was under a dilemma that whether is it true or not

I had gone through that section but had not found the word 'Preference Share Dividend' then i was confused but by highlighting the words which required to be given insist.....it made my work more easy and clear

Thanks again