Dividend

Process for declaration of Final dividend by Private Limited Companies

Income Tax - Article explains Meaning of Dividend as per Secretarial Standard-3, Types of Dividend and Process for declaration of Final dividend by Private Limited Companies under Section 123 of Companies Act, 2013 Read With Companies (Declaration And Payment Of Dividend) Rules, 2014. √ Meaning of Dividend as per Secretarial Standard-3 “Divide...

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Taxability of Dividend, Quarter-wise breakup of dividend income

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, subject to Section 115BBDA which provides for taxability of dividend in excess of Rs. 10 lakhs. […]...

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Declaration of Dividend – Section 123 to 127 of Companies Act 2013

Income Tax - DECLARATION OF DIVIDEND SECTION 123 TO SECTION 127 OF THE COMPANIES ACT 2013 READ WITH COMPANIES (DECLARATION AND PAYMENT OF DIVIDEND) RULE 2014  Definition of Dividend  Section 2(35) of Companies Act 2013 dividend includes interim dividend. Interim Dividend Means – The Dividend which is declared between financial year/ Calendar year ...

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Section 115BBD- Withdrawal of concessional Tax rate on dividend income

Income Tax - Withdrawal of concessional rate of taxation on dividend income under section 115BBD Section 115BBD of the Act provides for a concessional rate of tax of 15 % on the dividend income received by an Indian company from a foreign company in which the said Indian company holds 26 % or more in nominal value of […]...

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Declaration of Interim Dividend

Income Tax - Interim Dividend can be declared out of profits from start of current year till end of quarter preceding the date of declaration and accumulated profits of previous financial year, which are not yet transferred to the free reserves. Thus, the period can be more than 12 months in such cases....

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Dividends on Indian Depository Receipts not taxable in terms of Indo-Mauritius tax treaty

Barclays Capital Mauritius Limited Vs ACIT (ITAT Mumbai) - ITAT Mumbai held that in terms of the provisions of the applicable tax treaty, i.e., Indo-Mauritius tax treaty, and as the provisions of the applicable tax treaty, being more beneficial to the assessee, override the provisions of the domestic law, the taxability of the dividends on the IDRs fails....

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Dividend Income for F.Y.2019-20 exempt under section10(34) of Income Tax Act

Manmohan Textiles Limited Vs National Faceless Appeal Centre (ITAT Mumbai) - Manmohan Textiles Limited Vs National Faceless Appeal Centre (ITAT Mumbai) Provisions of Section 10(34) of the Act which stood amended by the Finance Act, 2020 and is applicable from A.Y.2021-22 onwards. For the sake of convenience, the amended provisions of Section 10(34) of the Act are reproduced ...

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HC deletes Section 36(1)(viii) disallowance on the principles consistency & certainty

PCIT Vs PNB Housing Finance Ltd (Delhi High Court) - Individual affairs are conducted and business decisions are made in expectation of consistency, uniformity and certainty and to detract from those principles is neither expedient nor desirable....

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After dividend payment SEBI cannot initiate action u/s 207 of Companies Act, 1956

Mukkaram Jan Vs SEBI (Karnataka High Court) - Karnataka High Court held that once the dividend is paid by the company, SEBI has no power to initiate any action against the company or its directors who have defaulted in payment of dividend as specified under Section 207 of the Companies Act, 1956....

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Provisions of Deemed Dividend provisions not applicable to Advancement of Loan in Ordinary Course of Business

DCIT Vs Lalitkumar K. Jain (ITAT Pune) - Assessee had not disputed that he is common shareholder in both companies, however, contended that provisions of section 2(22)(e) have no application, inasmuch as, loan advanced was in ordinary course of its business....

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IRDA approves Preference & Equity Shares as approved investment subject to dividend

REF: IRDAUF8t1/CIR/INV/255/09/2021 - (27/09/2021) - IRDAI permits Insurers to classify investments in Preference Shares and Equity Shares as part of Approved Investment of for at least 2 consecutive years immediately preceding (as required under Regulation 3(a)(4) and 3(a)(S) of IRDAI (Investment) Regulations, 2016) for the period from 1st October, 2...

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Recent Posts in "Dividend"

Dividends on Indian Depository Receipts not taxable in terms of Indo-Mauritius tax treaty

Barclays Capital Mauritius Limited Vs ACIT (ITAT Mumbai)

ITAT Mumbai held that in terms of the provisions of the applicable tax treaty, i.e., Indo-Mauritius tax treaty, and as the provisions of the applicable tax treaty, being more beneficial to the assessee, override the provisions of the domestic law, the taxability of the dividends on the IDRs fails....

Read More

Dividend Income for F.Y.2019-20 exempt under section10(34) of Income Tax Act

Manmohan Textiles Limited Vs National Faceless Appeal Centre (ITAT Mumbai)

Manmohan Textiles Limited Vs National Faceless Appeal Centre (ITAT Mumbai) Provisions of Section 10(34) of the Act which stood amended by the Finance Act, 2020 and is applicable from A.Y.2021-22 onwards. For the sake of convenience, the amended provisions of Section 10(34) of the Act are reproduced hereunder:- “[(34) any income by way o...

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HC deletes Section 36(1)(viii) disallowance on the principles consistency & certainty

PCIT Vs PNB Housing Finance Ltd (Delhi High Court)

Individual affairs are conducted and business decisions are made in expectation of consistency, uniformity and certainty and to detract from those principles is neither expedient nor desirable....

Read More

After dividend payment SEBI cannot initiate action u/s 207 of Companies Act, 1956

Mukkaram Jan Vs SEBI (Karnataka High Court)

Karnataka High Court held that once the dividend is paid by the company, SEBI has no power to initiate any action against the company or its directors who have defaulted in payment of dividend as specified under Section 207 of the Companies Act, 1956....

Read More

Provisions of Deemed Dividend provisions not applicable to Advancement of Loan in Ordinary Course of Business

DCIT Vs Lalitkumar K. Jain (ITAT Pune)

Assessee had not disputed that he is common shareholder in both companies, however, contended that provisions of section 2(22)(e) have no application, inasmuch as, loan advanced was in ordinary course of its business....

Read More

Premium on redemption of preference shares not taxable as deemed dividend

Information Technology Park Ltd. Vs ITO (ITAT Bangalore)

ITAT Bangalore held that excess premium paid by the assessee on redemption of preference shares cannot be taxed as deemed dividend under section 2(22)(d) or section 2(22)(e) and hence deleted the addition....

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Process for declaration of Final dividend by Private Limited Companies

Article explains Meaning of Dividend as per Secretarial Standard-3, Types of Dividend and Process for declaration of Final dividend by Private Limited Companies under Section 123 of Companies Act, 2013 Read With Companies (Declaration And Payment Of Dividend) Rules, 2014. √ Meaning of Dividend as per Secretarial Standard-3 “Divide...

Read More
Posted Under: Income Tax |

Taxability of Dividend, Quarter-wise breakup of dividend income

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, subject to Section 115BBDA which provides for taxability of dividend in excess of Rs. 10 lakhs. […]...

Read More
Posted Under: Income Tax |

Declaration of Dividend – Section 123 to 127 of Companies Act 2013

DECLARATION OF DIVIDEND SECTION 123 TO SECTION 127 OF THE COMPANIES ACT 2013 READ WITH COMPANIES (DECLARATION AND PAYMENT OF DIVIDEND) RULE 2014  Definition of Dividend  Section 2(35) of Companies Act 2013 dividend includes interim dividend. Interim Dividend Means – The Dividend which is declared between financial year/ Calendar year ...

Read More
Posted Under: Income Tax |

Section 115BBD- Withdrawal of concessional Tax rate on dividend income

Withdrawal of concessional rate of taxation on dividend income under section 115BBD Section 115BBD of the Act provides for a concessional rate of tax of 15 % on the dividend income received by an Indian company from a foreign company in which the said Indian company holds 26 % or more in nominal value of […]...

Read More
Posted Under: Income Tax |

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