SOUMYA SENGUPTA (EXECUTIVE) (37 Points)
03 November 2012SUPPOSE THAT THE DIVIDEND FROM THE LISTED EQUITY SHARES IS THE ONLY INCOME IN X LTD AND BEING AN INDIAN COMPANY IT IS EXEMPTED FROM TAX U/ S 10(34).
AND NOW , IS DIVIDEND DISTRIBUTION TAX IS PAYABLE ON THE DIVIDEND DECLEARED TO EQUITY SHARE HOLDERS OF X LTD OUT OF DIVIDEND INCOME OF THE X LTD FROM LISTED EQUITY SHARES?
KARANDEEP,CA,B.Com,CS FNL
(JOB)
(457 Points)
Replied 03 November 2012
You have to pay the dividend distribution tax for the same.
Saket Sinha
(Student)
(129 Points)
Replied 03 November 2012
Yes definately, Xltd. have to pay dividend distribution tax on dividend declared by Xltd to its shareholders.
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