Dividend

This query is : Resolved 

16 February 2015 if the company allot dividend to share holders, the company should pay dividend tax to the government, , whether it is burden to the share holders or company, I am so confusing

16 February 2015 Hi Mallayya,
Its look like a burden on Company but actually on shareholder.

See what happens if co has a distributable profit of Rs.10 Lakhs than it will distribute it in such a manner that Dividend +CDT does not exceed Rs.10 Lakh.
Because Rs.10 Lakhs is fixed budget that co has it in its kitty to pay taxes (CDT) & distribute Dividend.

Regards



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