Dividend Income

This query is : Resolved

Sandeep Rohatgi (Querist)
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04 February 2009 Sir ,

Kindly look in the issue , whether the Income from dividend shall be shown as Business Income for a Investment Company .

In the present case the Company has having ( Investment in shares in bulk quantity ) and has shown the same in investments and claim capital gain on these transactions .

The dividend received from these shares should be treated as business income or not in the case where the company is having only two source of income one from Rental Income and other from Dividend

Sandeep Rohatgi
9868705794

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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04 February 2009 If you are showing it as investments and the gains are taxed as capital gains then the dividend income will be exempt from tax since the distributor of dividend is already paying dividend tax before distribution.