Dividend Tax

This query is : Resolved

Guest

Guest (Querist)

21 August 2008 A company paying Tax on Dividend. However, comapny cannot charge Dividend Tax Expense against profit of the company. It is shown under appropriation of profit. So, naturally it is expense from shareholders wealth. So, if income of shareholders is below basic exemption limit, why he cannot claim refund of such dividend tax ?

Subash Gaijes

Subash Gaijes (Expert)
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21 August 2008 Dear Mr. Ravi,
1. Dividend income is exempt from tax, because of your opinion. (already taxed)
2. If a shareholder has earned incomes, which is less than the basic limit, then he has to forgo the DTT paid, because LOGIC IS NOT LAW.

Guest

Guest (Querist)

22 August 2008 I cant get your answer Mr. Subash Gaijes. i agree dividend income is expempt from tax in the hands of share holder. But if income of shareholder is not exceed basic exemption limit, why should he forgo DTT ?

Second question is that, why a company cannot claim DDT Expense aginst profit ?

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