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TMI BlogTaxation of Dividend and Deemed DividendX X X X Extracts X X X X X X X X Extracts X X X X ..... x.] Section 115BBD :- Dividend Received by Indian Company from Foreign Company in which it has holding of 26% or more of equity share capital shall be taxable @15% in hands of Indian Company. (No other expenses is allowed against dividend). Deemed Dividend :- Section 2(22)(a) Any Distribution of Assets by a company to its shareholders to the extent the company possesses accumulated profit. Section 2(22)(b) (a) Any distribution to its shareholders by Company of its debentures, debentures stock or deposit certificates, and (b) Any distribution to its preference shareholders of shares by way of Bonus, (to the extent to which co. possesses accumulated profit.) Section 2(22)(c) Any Distribution of Assets by a company on liquidation to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies other than 115AB 10 Deduction to Companies in Respect of Certain Inter Corporate Dividend Section 80M :-If Gross total income of domestic company include dividend from another domestic company or foreign company or business trust then a) Aggregate dividend Income received (include deemed dividend) or dividend distributed to shareholders upto due date whichever is lower shall be allowed as deduction to the company. =============================== Rates of Dividend Tax Rates for the Financial Year 2018-19 to 2019-20 Section 115O Any addition to the income-tax chargeable in respect of the total income of a domestic company for any assessment year, any amount declared, distributed or paid by such company by way of dividends (whether interim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d = 15% [Reverse Calculation] Section 115QA 3. Distributed income of domestic company for buy-back of unlisted shares = 20% Notes: Note 1: - Add Surcharge - Surcharge is 12% of income-tax in case of domestic companies Note 2: - Add Education Cess - E. Cess is 2% of Income Tax plus surcharge Note 3: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax plus surcharge Note 4: - Dividend (other than dividend tax) is exempt in the hands of shareholder u/s 10(34) =============================== Rates of Dividend Tax Rates for the Financial Year 2015-16 FY 2016-17 Section 115O 1. Deemed Dividend u/s 2(22)(e) = NA 2. Dividend Other than deemed dividend = 15% [Reverse Calculation] Section 115QA 3. Distributed income of domestic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014 Section 115O 1. Deemed Dividend u/s 2(22)(e) = NA 2. Dividend Other than deemed dividend = 15% Section 115QA 3. Distributed income of domestic company for buy-back of unlisted shares = 20% Section 115TA 4. Distribution by securitization trust to investors - 25% if the recipient is individual / HUF and 30% if recipient is any other person Notes: Note 1: - Add Surcharge - Surcharge is 10% of income-tax and in case of domestic companies Note 2: - Add Education Cess - E. Cess is 2% of Income Tax plus surcharge Note 3: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax plus surcharge Note 4: - Dividend (other than dividend tax) is exempt in the hands of shareholder u/s 10(34) =============================== Rates of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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