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Dividend tax

rajiev raj singhania (raibareli) (28 Points)

06 March 2016

1.Many channel says is a triple tax in system. This is right or wrong. 2.Its is batter if takes as TDS

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4 Replies

ANAND (CA) (133 Points)
Replied 06 March 2016

Yes it is a triple tax as

1. NP gets taxed

2. Companies pay div distribution tax

3. Now person receiving div would pay tax also So its triple

TDS would be a good option but considering no of shareholders it maybe a problem for big companies

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rajiev raj singhania (raibareli) (28 Points)
Replied 06 March 2016

Dear Anand,

Thanks for reply, But I have more query. It is setback as startup program, secound in small companies indian investor not invest for long term, third there is any option?

rajiev raj singhania (raibareli) (28 Points)
Replied 06 March 2016

Dear Anand,

Thanks for reply, But I have more query. It is setback as startup program, secound in small companies indian investor not invest for long term, third there is any option?

ANAND (CA) (133 Points)
Replied 06 March 2016

Usually startups don't give dividend atleast for the 1st 5 years. Most investors put money for capital appreciation and not for dividends. Even before dividend was taxable before it was taxed at companies hand. Govt needs taxes don't see any way out