banner_ad

taxability of dividend

Tax queries 3689 views 9 replies

can anyone plz explain me d taxability of  'dividend'. and also sub clause of deemed dividend i.e 2(22)e.

dividend isnt taxable in the hands of shareholders after 31 march 2003, am i right?

and i have gone through 1 case where a person received a loan of Rs 73 lakh from the company.

the income-tax officer (ITO) added Rs 73 lakh as deemed dividend assessable under Section 2(22)(e).

It was pleaded that the amount was only a temporary borrowing and not in the nature of loan or advance.and thus was exempt.

Replies (9)

1. Dividend from indian cos are exempt u/s 10(34) in the hands of recepient as cos pay CDT @ (15+10+3) %

2. dividends from foreign cos are taxable as Other Source

3. 2(22)(e) dividend is taxable in the hands of recepient as cos (pvt cos) are not required to pay CDT. The logic - if cos pay CDT then it would amount to other members loosing for the benefit of the member having substantial interest as CDT is cash outflow for the co

"1. Dividend from indian cos are exempt u/s 10(34) in the hands of recepient as cos pay CDT @ (15+10+3) %"

as per my knowledge it is 12.5+10+3 isnt it?

No it is not 12.5% because as per section 115-O(1) is it 15%......

rate of tax on dividend has been amended frm FY 08

as per sec2 (22)(e) loan give to a person holding more than 10% of the voting rights or his relative or to his firm in which he has substantial interest will bw taxable in his hands  irrespective of its recoverability

No Priyanka..the rate for AY 08-09 & 09-10 is 15%

thanks

Surya

if you leave this doubt i've one doubt regarding DDT(Dividend Distribution Tax) i.e;

Why Company has to pay Dividend Distribution Tax in cae of distributing dividends from the taxed income of caompany...??? It seems to be double Taxation..!!

 

 

ADV HAPPY PONGAL 2 ALL

Earlier the rate was 12.5% but later amended to 15% since F.Y. 2007 - 08.

thanks you



CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
05 May 2026
Accountant

Sanjay K Pathak & Associates

Noida

Graduate (Any)

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details