Income Tax : This guide explains how the abolition of DDT shifted the tax burden on dividends from companies to shareholders from 1 April 2020 ...
Income Tax : The Special Bench ruled that DDT under section 115-O is a distinct tax on the company, not on shareholders. Treaty dividend rates ...
Company Law : Explore the key provisions on dividend declaration under the Companies Act, 2013, including rules, restrictions, and compliance wi...
Income Tax : Double taxation of dividends burdens investors, deterring equity investments. Budget 2025 may reform rates to enhance economic eff...
Company Law : Learn about dividend types, declaration processes, and penalties for non-payment under the Companies Act....
Income Tax : Delhi ITAT held that Dividend Distribution Tax paid on dividends to non-resident shareholders could be restricted to the treaty ra...
Income Tax : The Supreme Court has framed substantial questions on whether DDT under Section 115-O is a tax on shareholder dividend income or o...
Income Tax : Court held that dividend remains income of the shareholder and DDT is an additional income tax covered under Article 2, restrictin...
Income Tax : Chennai ITAT rules Dividend Distribution Tax (DDT) is a company tax and not covered by DTAA, rejecting the refun...
Income Tax : Explore Sennheiser Electronics India vs Circle – 4 case at ITAT Delhi. Section 115-O rate applies for additional tax on dividend...
Discover the new tax rules for share buybacks under the Finance Bill 2024, including deemed dividend taxation and capital loss treatment starting October 2024.
Explore Sennheiser Electronics India vs Circle – 4 case at ITAT Delhi. Section 115-O rate applies for additional tax on dividends to non-residents, not DTAA rate.
ITAT held that dividend declared, distributed or paid by a domestic company to non resident shareholder (s) attract additional income tax (tax on distributed profits) referred to in section 115-O of the Act, such additional income tax payable by the domestic company shall be at the rate of mentioned in section 115-O of the Act and not at the rate of tax applicable to the non resident shareholder(s) as specified in the relevant DTAA with reference to such dividend income.
ITAT Mumbai held that dividend declared, distributed or paid by a domestic company to a non-resident shareholder will attract Additional Income Tax (Tax on Distributed Profits) referred to in Sec.115-O of the Act and not at the rate of tax applicable to the non-resident shareholder(s) as specified in the relevant DTAA.
Dividend distribution tax is one of the most controversial topics in the income tax area, and it has welcomed many judicial decisions. DDT is a tax levied on dividends distributed by companies out of their profits amongst their shareholders.[
Strategic Infosystems Pvt. Ltd. Vs DCIT (ITAT Ahmedabad) In the instant case, the assessee has deducted and deposited DDT within time, but due to an inadvertent mistake in filing the challan, the assessee has been denied credit of DDT. The assessee has filed several applications under section 154 of the Act with the CPC, but […]
Navigate the changes in dividend taxation post-Finance Act 2020. Delve into the tax obligations for domestic companies, withholding tax, and the impact on shareholders. Stay informed on deductions, rates, and the implications for non-resident investors. Get comprehensive insights on the taxability of dividends under the Income Tax Act, 1961, and plan your financial strategies accordingly.
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 […]
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 […]
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.
