Tax when multiple parties involved

Suresh Kumar Ramasamy (Software Consultant) (36 Points)

07 March 2016  

Two or more people join together to make an investment in a product of a company. The taxable returns are paid to one of them (and distributed thereon). The company accounts its payment under the PAN of the payee (and not all the investors). Each of investors are taxable under different slabs. Now what is the right way to compute the tax and who should make the payment to the Income Tax department? Thanks.