taxability of dividend

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

thanks you