Ddt
This query is : Resolved
15 November 2013
in pvt ltd director and shareholder are same and director declared dividend as well as pay ddt than
In personal return of director dividend are exempt U/S 10(34)
15 November 2013
Hi
INCOME-TAX PROVISIONS OF DIVIDEND
TDS not required to be deducted on dividend
With effect from 1st April, 2003, no deduction of tax will be made by an Indian company on dividend paid by it to resident shareholders who are individuals or Indian companies.
Payment of Dividend tax by company
During the financial year 2003-2004, as per section 115-O of the Income-tax Act, 1961, dividend other than deemed dividend under section 2(22)(e) will be subject to payment of tax by the companies declaring dividend.
Intimation for details of unclaimed dividend to shareholders alongwith notice of general meeting
The company in which any unpaid or unclaimed amount of dividend which is payable upto a period of seven years, should intimate to the shareholders concerned, individually, alongwith the notice of annual general meeting every year, the amount of unclaimed dividend due and payable to him and the period in respect of which it is payable.
Transfer of unpaid/unclaimed dividend amount to the Investor Education and Protection Fund
Section 205A(5) of the Companies Act, 1956 provides that any money transferred to the unpaid dividend account of a company, which remains unpaid or unclaimed for a period of seven years from the date of transfer shall be transferred by the company to Investor Education and Protection Fund.
In terms of the provisions of section 205C(2)(e) of the Act, the interest accrued on the amount of unpaid dividend shall also be credited to the Investor Education and Protection Fund and no amount of the fund shall become due for payment.
INCOME-TAX PROVISIONS OF DIVIDEND
TDS not required to be deducted on dividend
With effect from 1st April, 2003, no deduction of tax will be made by an Indian company on dividend paid by it to resident shareholders who are individuals or Indian companies.
Payment of Dividend tax by company
During the financial year 2003-2004, as per section 115-O of the Income-tax Act, 1961, dividend other than deemed dividend under section 2(22)(e) will be subject to payment of tax by the companies declaring dividend.
Intimation for details of unclaimed dividend to shareholders alongwith notice of general meeting
The company in which any unpaid or unclaimed amount of dividend which is payable upto a period of seven years, should intimate to the shareholders concerned, individually, alongwith the notice of annual general meeting every year, the amount of unclaimed dividend due and payable to him and the period in respect of which it is payable.
Transfer of unpaid/unclaimed dividend amount to the Investor Education and Protection Fund
Section 205A(5) of the Companies Act, 1956 provides that any money transferred to the unpaid dividend account of a company, which remains unpaid or unclaimed for a period of seven years from the date of transfer shall be transferred by the company to Investor Education and Protection Fund.
In terms of the provisions of section 205C(2)(e) of the Act, the interest accrued on the amount of unpaid dividend shall also be credited to the Investor Education and Protection Fund and no amount of the fund shall become due for payment.
15 November 2013
Dear Rajesh,
Yes you are correct. Once DDT is paid by the company, the said dividend shall be exempted from any tax in the hands of the shareholder.
Yes you are correct. Once DDT is paid by the company, the said dividend shall be exempted from any tax in the hands of the shareholder.
15 November 2013
Correct Ajay
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- COP Surrender 2024
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
