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.