Taxability of Dividend Income
Taxability of Dividend Income
Dividend Income Section 56
The provisions relating to the year of taxability of dividend are contained in Section 8 of the Act, which are as follows –
(1) Any dividend declared or distributed or paid by a company under section 2(22) of the Act shall be deemed to be the income of the previous year in which it is so declared, distributed or paid;
(2) Any interim dividend shall be deemed to be the income of the previous year in which the amount of such dividend is unconditionally made available by the company to the member who is entitled to it.
Ans: Deemed dividend under section 2(22) shall be taxed as follows –
(1) Dividend under section 2(22)(a) to 2(22)(d) :
(a) In hands of shareholders : It shall be exempt except where the aggregate amount of dividends exceeds 10,00,000, where such excess is chargeable to tax @ 10% as provided in Section 115BBDA.
(b) In hands of company : The company will be liable to pay tax on distributed profits @ 15% on the gross amount of dividends + 12% Surcharge + 4% HEC i.e. 20.5552941% on the net amount of dividends.
(2) Dividend under section 2(22)(e) :
(a) In hands of shareholder : Exempt from tax under Section 10(34).
(b) In hands of company : The company is liable to pay dividend distribution tax @ 30% + 12% Surcharge + 4% HEC i.e. 34.944% under Section 115-0 of the Act.
Tax on certain dividends received from domestic companies [Section 115BBDA] :
(1) Dividend in excess of 10,00,000 - Chargeable to tax @ 10% : Where the total income of a specified assessee, includes any income in aggregate exceeding 10,00,000, by way of dividends [other than dividend under Section 2(22)(e)] declared, distributed or paid by a domestic company or companies, the income-tax payable shall be aggregate of –
(a) the amount of income-tax calculated on the income by way of such dividends in aggregate exceeding 10,00,000, at the rate of 10% ; and
(b) the amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the amount of income by way of dividends.
(2) No deduction admissible :
No deduction in respect of any expenditure or allowance or set-off of loss shall be allowed to the assessee under any provision of this Act in computing the income by way of dividends.
Explanation: "Specified assessee" means a person other than, —
(i) a domestic company; or
(ii) a fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in Section 10(23C)(iv)/(v)/(vi)/(via); or
(iii) a trust or institution registered under section 12A or section 12AA.
Watch Demo for Tax (CA/CMA): https://www.conceptonlineclasses.com/demovideos
Visit Website: https://www.conceptonlineclasses.com/
#TaxabilityofDividendIncome
.png)
.png)
.png)
Salary of a Qualified CMA
Salary of a Qualified CMA
Best Career Option After Class 12th
Best Career Option After Class 12th
.png)
Why to choose career in "CMA" ?
The Reasons to Choose a Career in "CMA"
.jpg)
What Is Balance ScoreCard
What Is Balance ScoreCard A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Balanced scorecards are used to measure and provide feedback to organizations. #BalanceScoreCard
Top Reviews
Introduction to Statistics for CA Foundation
Introduction to Statistics for CA Foundation Business Mathematics, Logical Reasoning and Statistics is designed as per latest CA Foundation syllabus for Paper 3 to provide a firm grounding in the principles, techniques and practice. The book adopts self-study approach and has been written in student-friendly manner. With a blend of conceptual learning and problem-solving approach, it offers in-depth understanding of the basic mathematical and statistical tools. #introductiontostatistics
.jpg)
Chapter X of Companies Act 2013
Chapter X of Companies Act 2013 The company shall place the matter relating to such appointment for ratification by members at every annual general meeting. ... Under the Act, the provisions for rotation of auditors in the listed Company & certain other class of Companies, have been provided for. #chapterxofcompaniesact2013
.jpg)
Relevant sections under the Companies Act, 2013 dealing with fraud and false statements
Relevant sections under the Companies Act, 2013 dealing with fraud and false statements The new parent corporate law “The Companies Act 2013” is mostly ... I am limiting my write-up to the provisions to the Act, and I request the readers to refer relevant rules, if any, before ... in the 2013 Act is the Section 447 dealing with “Punishment for fraud”. ... Section 448
.jpg)
What is Corporate Image
What is Corporate Image A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public. The corporate identity is typically visualized by branding and with the use of trademarks, but it can also include things like product design, advertising, public relations etc #WhatisCorporateImage
.jpg)
What is Energy Audit
What is Energy Audit An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building. It may include a process or system to reduce the amount of energy input into the system without negatively affecting the output. #whatisenergyaudit
