c

Dividend Distribution Tax

Dividend Distribution Tax

Income Tax - If a company is earning profit then they provide it to the shareholders of the company which is known as dividend. Dividend is income for shareholders so it is taxable in the hands of tax payer. Though, Income tax act 1961 provides exemption of dividend which is receive from an Indian company by imposing a […]...

Read More

Summary on Taxation of Dividends (Part – I)

Income Tax - BEFORE AY 2021-22 ♦ Dividend is taxable in the hands of distributor (i.e. Assessee distributing dividend) @ 15% + Surcharge applicable + Education Cess @ 4% in form of CDT/DDT ♦ Assessee receiving dividend gets Exemption up to Rs. 10 Lakhs of dividend income, above Rs.10 lakhs, taxable @ 10% on excess amount FROM AY […]...

Read More

Income Tax on dividend received from company

Income Tax - Up to Assessment Year 2020-21, if a shareholder gets dividend from a domestic company then he shall not be liable to pay any tax on such dividend as it is exempt from tax under section 10(34) of the Act. However, in such cases, the domestic company is liable to pay a Dividend Distribution Tax (DDT) […]...

Read More

Dividend V. Buyback – Which is more beneficial?

Income Tax - Many a times, profitable companies end up in a situation of generating more cash than they can reasonably reinvest in their business at attractive returns on capital. As cash holdings on a company’s balance sheet increases, there is increased pressure from shareholders to return some of this excess cash to them. There are two ways [&hel...

Read More

Declaration & Tax Treatment of Interim Dividend

Income Tax - As per Section- 2(35) ‘dividend includes interim dividend’ signifies that the provisions of Companies Act 2013, applicable to the final dividend to the extent possible, shall also applicable on interim dividend. As the word “interim” means “relating to less than a full year’s business activity” so the dividend de...

Read More
Sorry No Post Found

Tribunal doubts whether tax treaty benefits can be extended to DDT

DCIT vs Total Oil India Pvt Ltd (ITAT Mumbai) - ITAT Mumbai expressed doubts on correctness of decisions of coordinate benches on dividend distribution tax (DDT) rate being restricted by treaty provision dealing with taxation of dividends in the hands of shareholders....

Read More

ITAT grants stay on demands of Rs. 3786 Cr on account of DDT

Grasim Industries Limited Vs DCIT (ITAT Mumbai) - Grasim Industries Limited Vs DCIT (ITAT Mumbai) By way of this stay application, the assessee applicant has sought a stay on collection/ recovery of tax and interest demands aggregating to Rs 3,786.34 crores in respect of the dividend distribution tax (DDT), and interest thereon, under section 115...

Read More

Tax rates specified in DTAA in respect of dividend must prevail over DDT

Giesecke & Devrient [India] Pvt Ltd. Vs Add. CIT (ITAT Delhi) - Giesecke & Devrient [India] Pvt Ltd. Vs ACIT (ITAT Delhi) To recapitulate, the DDT is levy on the dividend distributed by the payer company, being an additional tax is covered by the definition of ‘Tax’ as defined u/s 2(43) of the Act which is covered by the charging section 4 of the Act and...

Read More

No Dividend Distribution Tax to be paid on Dividend declared pursuant to amalgamation of companies

Torrent Private Limited Vs. CIT (Gujarat High Court) - Whether the dividend declared by the company after the effective date of amalgamation but before the date of sanction by the High Court would cease to be dividend declared by the company?...

Read More
Sorry No Post Found

Recent Posts in "Dividend Distribution Tax"

Dividend Distribution Tax

If a company is earning profit then they provide it to the shareholders of the company which is known as dividend. Dividend is income for shareholders so it is taxable in the hands of tax payer. Though, Income tax act 1961 provides exemption of dividend which is receive from an Indian company by imposing a […]...

Read More
Posted Under: Income Tax |

Summary on Taxation of Dividends (Part – I)

BEFORE AY 2021-22 ♦ Dividend is taxable in the hands of distributor (i.e. Assessee distributing dividend) @ 15% + Surcharge applicable + Education Cess @ 4% in form of CDT/DDT ♦ Assessee receiving dividend gets Exemption up to Rs. 10 Lakhs of dividend income, above Rs.10 lakhs, taxable @ 10% on excess amount FROM AY […]...

Read More
Posted Under: Income Tax |

Tribunal doubts whether tax treaty benefits can be extended to DDT

DCIT vs Total Oil India Pvt Ltd (ITAT Mumbai)

ITAT Mumbai expressed doubts on correctness of decisions of coordinate benches on dividend distribution tax (DDT) rate being restricted by treaty provision dealing with taxation of dividends in the hands of shareholders....

Read More

Income Tax on dividend received from company

Up to Assessment Year 2020-21, if a shareholder gets dividend from a domestic company then he shall not be liable to pay any tax on such dividend as it is exempt from tax under section 10(34) of the Act. However, in such cases, the domestic company is liable to pay a Dividend Distribution Tax (DDT) […]...

Read More
Posted Under: Income Tax |

ITAT grants stay on demands of Rs. 3786 Cr on account of DDT

Grasim Industries Limited Vs DCIT (ITAT Mumbai)

Grasim Industries Limited Vs DCIT (ITAT Mumbai) By way of this stay application, the assessee applicant has sought a stay on collection/ recovery of tax and interest demands aggregating to Rs 3,786.34 crores in respect of the dividend distribution tax (DDT), and interest thereon, under section 115O/115Q r.w.s. 2(22)(a) of the Income Tax...

Read More

Dividend V. Buyback – Which is more beneficial?

Many a times, profitable companies end up in a situation of generating more cash than they can reasonably reinvest in their business at attractive returns on capital. As cash holdings on a company’s balance sheet increases, there is increased pressure from shareholders to return some of this excess cash to them. There are two ways [&hel...

Read More
Posted Under: Income Tax |

Declaration & Tax Treatment of Interim Dividend

As per Section- 2(35) ‘dividend includes interim dividend’ signifies that the provisions of Companies Act 2013, applicable to the final dividend to the extent possible, shall also applicable on interim dividend. As the word “interim” means “relating to less than a full year’s business activity” so the dividend de...

Read More
Posted Under: Income Tax |

Income Tax on Dividends- FAQs

FOR RESIDENT SHAREHOLDERS: When valid PAN is available in the records of the Company: Tax deduction rate on Dividend – 7.5%# When valid PAN is not available in the records of the Company: Tax deduction rate on Deividend- 20% #The tax rate has been reduced from 10% to 7.5% with effect from 14 May 2020 […]...

Read More
Posted Under: Income Tax |

Tax rates specified in DTAA in respect of dividend must prevail over DDT

Giesecke & Devrient [India] Pvt Ltd. Vs Add. CIT (ITAT Delhi)

Giesecke & Devrient [India] Pvt Ltd. Vs ACIT (ITAT Delhi) To recapitulate, the DDT is levy on the dividend distributed by the payer company, being an additional tax is covered by the definition of ‘Tax’ as defined u/s 2(43) of the Act which is covered by the charging section 4 of the Act and charging […]...

Read More

Dividend Distribution Tax- Reinstate to Shareholders

The shift in the dividend distribution tax (DDT) in the hands of shareholders hailed a big relief for corporates and non-resident. This article primarily focuses on, how (DDT) is taxed as per new amendments by the Finance Act, 2020. It also aims to show, the impact of (DDT) in the hands of shareholders i.e. whether […]...

Read More
Posted Under: Income Tax |

Browse All Categories

CA, CS, CMA (5,865)
Company Law (7,969)
Custom Duty (8,935)
DGFT (4,691)
Excise Duty (4,588)
Fema / RBI (4,934)
Finance (5,344)
Income Tax (39,439)
SEBI (4,284)
Service Tax (3,846)

Search Posts by Date

January 2022
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31