Dear All,
1. Is the premium amount will be treated as divident in case of cumulative preference shares and is it free from income tax as divident?
2. Either the divident on non-cumulative preference share is free from income tax or not? If it's free from income tax then is the company have to pay CDT on declared dividents, and also tax on declared divident because that is again profit. Ya that divident declared can be a part of P&L and after deduction of divident from profit, the company have to pay tax.
3. What about cumulative preference share: is the premium declared on cumulative preference share will considered as divident? and company have to pay both tax on profit and on divident?
4.Can an agriculture based company pay divident and is it free from CDT means corporate divident tax and corporate tax both?