Company pays tax on its profit, but whereas when company distributes its profit to it's Share holders, its again taxed as DDT.
Isn't this double taxation??
6 Replies
Vinay Govi
(25 Points)
Replied 09 April 2020
No it is not double taxation. The income distributed to shareholders is out of the profits earned by the company. In this the profit is not earned directly by shareholders. They are only investing their money.
Mandakulathur Ananthanarayanan
(186 Points)
Replied 09 April 2020
DDT is a tax on dividends the incidence of which is shifted to companies from shareholders. Now, w.e.f April 1, 2020, DDT is abolished and dividends are taxed in the hands of shareholders
Ganesan Sakthivel
(12 Points)
Replied 09 April 2020
@ Vinay
you can't say that shareholders just invest. Ambani holds shares of Reliance, whereas he doesn't hold as investments.
See, when partenership firm Distributes profit, why doesn't this same concept of DDT apply???
you can't say that shareholders just invest. Ambani holds shares of Reliance, whereas he doesn't hold as investments.
See, when partenership firm Distributes profit, why doesn't this same concept of DDT apply???
Vinay Govi
(25 Points)
Replied 09 April 2020
In partnership firm the partners makes investment and do the business and earn income but in case of company it is different.
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 09 April 2020
DDT is applicable u/s 115 O (with gross up concept )
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 09 April 2020
DDT is applicable u/s 115 O (with gross up concept )
Recent Topics
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
Related Threads
CAclubindia
