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Dividend Subsidiary to Holding company

Pankaj Arora (Learner) (3134 Points)

08 January 2019

What will be tax treatment for dividend received from subsidiary to holding company?

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4 Replies

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 08 January 2019

If DDT tax is paid then it will be exempt in the hands of holding company, and at the time declaration of dividend by holding company, DDT will be paid on after deducting amount of dividend received from subsidiary company

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Pankaj Arora (Learner) (3134 Points)
Replied 08 January 2019

and what will be income tax rate in the hands of holding company for dividend received from subsidiary company

v k s supraja (intermediate) (216 Points)
Replied 09 January 2019

When any resident assessee received dividend from domestic company in aggregate more than Rs. 10 lac then recipient is required to pay tax as per Sec 115 BBDA at 10% on dividend in excess of 10 lac.

However sec.115BBDA shall not be applicable w.e.f.01.04.2018 to following:

a) Domestic Company
b) A fund or trust or institution or any university or other educational institution or any hospital referred u/s 10(23C)
c) A trust or institution registered u/s 12A or 12AA.