ddt(dividend distribution tax)
dev (student) (48 Points)
17 March 2018
why isn't the govt abolishing dividend distribution tax? i do not see any logic behind it.
2 Replies
rashh
(student)
(229 Points)
Replied 17 March 2018
Dude as a company you can't transfer ur profits to shareholders free of cost without paying any taxes on it because every penny earned by a company is taxable without any basic exemption limit.
now owing to 10(34) which exempts dividend in the hands of shareholders the govt was left with only one choice & that was to tax company when it distributes dividend on a gross basis that's why concept of DDT came :) hope it helped
now owing to 10(34) which exempts dividend in the hands of shareholders the govt was left with only one choice & that was to tax company when it distributes dividend on a gross basis that's why concept of DDT came :) hope it helped
dev
(student)
(48 Points)
Replied 17 March 2018
but sir profit earned by company is already taxed once @ 30%. now why to pay tax again on taking home our own profits which are already taxed.
isnt this double taxation?
isnt this double taxation?
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