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 ...
Income Tax : Get a comprehensive overview of dividend taxation after the shift to the classical system. Covers TDS obligations, tax rates, DTAA...
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...
Uptill the AY 2020-21, a domestic company was liable to pay the Dividend Distribution Tax (DDT) under section 115-O of the Income Tax Act, on any dividend distributed by it to the shareholders. Consequently, shareholders were exempt from paying tax on such dividend income by virtue of section 10(34).
Removal of DDT (Dividend Distribution Tax) by Finance Act, 2020 (FA 2020) and its impact on other provisions of Income Tax Act, 1961 Existing Provisions (before amendment): Section 115-O provides that, in addition to the income-tax chargeable in respect of the total income of a domestic company, any amount declared, distributed or paid by way […]
Abolition Of Dividend Distribution Tax (DDT) – A Compliance Burdens When It Comes to TDS Of Non-Resident Investors Introduction:- Finance Act, 2020 has abolished DDT regime under which Dividends paid by Domestic Company were exempt in the hands of receivers (including Non-Residents). Thus now companies will be liable to deduct TDS under following sections:- Particulars […]
With a view to boost investors’ confidence in the Indian market and put India in a competitive position in terms of taxing rights as compared to other countries in APAC region, the Government of India proposed to abolish Dividend Distribution Tax (also known as DDT) with effect from 01 April 2020.
As dividend become proposed to be taxable, litigation u/s 14A (Expenses incurred in relation to exempt income) now will be reduced. However, deduction of interest as proposed u/s 57 may lead to kind of litigation as was there u/s 14A.
For a developing country like India- what we need the most is a stronger economy which indeed needs a stronger budget which in turn builds a stronger nation altogether. This budget shall propose to give Indian economy an impetus to emerge as more vibrant and stronger. Our Finance Minister released Budget 2020 with an aspiration of […]
In Finance Bill, 2020 (Bill) , one of the Biggest move of the government was abolishing the DDT charged u/s 115-O of the Income Tax Act , 1961 (the Act). However government has inserted/ amended certain sections to make the Dividend income taxable in the hands of receiver by removing Section 10(34) of the Act. […]
Elimination of dividend distribution tax and returning to the classical system of dividend taxation was the one of the key highlights of this Union Budget 2020. We will discuss the proposed scheme of the taxation and impact thereon forthwith: The Need: The old system had created a hurdle and DDT was considered as extra cost […]
The new corporate tax regime introduced vide Taxation Laws (Amendment) Act, 2019 expressed the government’s desire to provide relief to the corporate sector and industry bodies at large. Market participants were hopeful that Budget 2020 will address their woes of Dividend Distribution Tax (DDT) as well. The legislative intent behind the introduction of DDT was […]
The Union Budget 2020 (‘Budget 2020’) was presented by the Honorable Finance Minister on 1 February 2020. All had set their eyes to witness what this Budget would unveil for reviving Indian economy. At the introduction of the speech, the Honorable FM mentioned that the existing Government wishes to open up vistas for a vibrant […]
