The Definition of Demestic Company Under Income Tax Act includes an Indian Company. 2(22)(a)
Further under Section 10(34) Divend Paid my domestic company (so we can say Indian Company) is exepmt in the hands of shareholder.
Again under Section 9 Divend Paid my Indian Company outside India if deemed to accurue and Arise in India and hence to be included in total income of assessee by virtue of Section 5
Is this not a contradiction. Why is it included in total income when it is exempt under 10(34)
The exemption u/s 10(34) was inserted recently.There hasnt been any consequential amendment in section 9.Dividends from domestic companies was actually taxable a few years ago.
dividend from a domestic company whethere recd in or out of India will be exempt as per sec 10(34).Also refer sec 115-O
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