Taxability of dividends

This query is : Resolved

Vijay Vishwakarma (Querist)
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04 December 2013 Whether dividend received from unlisted/private limited companies exempt from tax in the hands of shareholders?
( i dont know whether above companies are paying CDT or not? )

Nitin Bhuta

Nitin Bhuta (Expert)
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04 December 2013 even private limited or unlisted or closing held companies are liable to pay dividend distribution tax(DDT) and hence income earned by way of dividend is tax free in the hands of recipients.

But if DDT is not paid by the company then it is taxable in the hands of recipient which in my opinion may not be possible considering compliance reporting under IT Act