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Dividend Distribution Tax

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Comprehensive Guide: Tax Treatment of Dividends Received

Income Tax : Explore dividend taxation for investors and corporations, including changes post-April 2020. Learn about domestic and foreign divi...

November 3, 2023 2595 Views 0 comment Print

The controversy of Dividend distribution tax

Income Tax : Dividend distribution tax is one of the most controversial topics in the income tax area, and it has welcomed many judicial decisi...

February 14, 2023 4347 Views 0 comment Print

Income Tax on dividend received from company

Income Tax : Navigate the changes in dividend taxation post-Finance Act 2020. Delve into the tax obligations for domestic companies, withholdin...

June 4, 2022 422940 Views 18 comments Print

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 inc...

November 1, 2021 8010 Views 0 comment Print

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 appl...

September 20, 2021 96060 Views 3 comments Print


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

April 12, 2021 1791 Views 0 comment Print

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 Act, 1961, on, what […]

Dividend V. Buyback – Which is more beneficial?

December 22, 2020 7086 Views 0 comment Print

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 […]

Declaration & Tax Treatment of Interim Dividend

November 17, 2020 13473 Views 0 comment Print

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 declared in the middle or before the […]

Income Tax on Dividends- FAQs

November 4, 2020 5793 Views 1 comment Print

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 […]

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

October 14, 2020 5334 Views 0 comment Print

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 […]

Dividend Distribution Tax- Reinstate to Shareholders

October 4, 2020 4830 Views 0 comment Print

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 […]

Tax on Income Distributed By Way of Buy-Back of Shares By Unlisted Companies- Anti Abuse Provision

August 24, 2020 2931 Views 0 comment Print

Tax on Income Distributed By Way of Buy-Back of Shares By Unlisted Companies- Anti Abuse Provision Dear Friends, payment of taxes is the duty of every citizen of this country. The Governments utilises taxes paid by us into different types of economic and socio works. Non payment or avoidance of taxes shall be punishable monetarily […]

New Dividend Distribution Tax Regime in India| Part 1: Indian Tax Payer

August 14, 2020 4428 Views 1 comment Print

Indian Finance Act 2020 has abolished Dividend Distribution Tax and, with effect from April 1, 2020, dividends declared by Indian companies would be taxable in the hands of shareholders. Replacing the concept of distribution taxes in the hands of the Indian company that was introduced in India in 1997.

Farewell To Dividend Distribution Tax – Double Edged Reform

August 4, 2020 5268 Views 2 comments Print

One major change that came with the Finance Act is removal of dividend distribution tax making section 10(34), 10(35), 115-O, 115R(2) and 115BBDA of the ITA inapplicable with effect from April 1, 2020. 

Taxability of Dividend under new tax regime

July 17, 2020 60609 Views 6 comments Print

A. Existing Provisions relating to dividend taxation: (i) Tax implication in the hands of company: Under the existing laws, even though dividend constituted income in the hands of the shareholders, the tax on such dividend was payable by the company which declared dividend, @ 15% of the gross dividend under section 115-O (plus surcharge and […]

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