07 February 2011
Total Chit Value Rs.500,000/- Monthly Subscription Rs.10000/- But Payments are paid like this mth.sub. Dividend. 10000 0 6500 3500 6500 3500 10000 0 6500 3500 6500 3500 in this way payments are made.Now for the AY 2010-11 dividends are taxable or not?
08 February 2011
You can show the premium as investment and calculate net dividend as profit/loss at the time of maturity, if dividend is possitive then show Devidend Earned as income in your P&L, otherwise show in P&L A/c as Dividend Paid in exp. side.
CAclubindia
