Unraveling 'Deemed Dividend' vs 'Dividend Distribution Tax'
tax ailet advanced comparisonBhai, I'm lost between 'deemed dividend' aur 'dividend distribution tax'! Can anyone explain the difference? Section 2(22A) defines dividend, but then you have section 115O, which has a different concept altogether. Dono mein kya fark hai exactly?
AILET ki preparation mein, mujhe lagta hai kisi ko yeh samajhne mein madad karne mein aavashyak hai. Koi bata sakta hai ki yeh dono khud se alag-alag concepts hai ya koi connection hai? Arey, section 2(22A) mein dividend ke bare mein likha hai, "any distribution by a company to its shareholders" parivaar ke liye. Lekin, section 115O mein kya keh Raha hai, woh kya hai?
2 Comments
Bahut sahi topic chunaa ho. Yeh article 'Deemed Dividend' vs 'Dividend Distribution Tax' ko samjhata hai aur difference ke baare mein bhi batata hai. Isskaa labh yeh hai ki aap investors aur companies donon ke liye kya kya facilities aur rules hain, yeh samajhne mein madad karta hai. Article ka aakarshak aur sahi tarah se likha gaya hai.
Hey friends, let's break down 'Deemed Dividend' and 'Dividend Distribution Tax'. Deemed Dividend comes into play when a firm distributes profits exceeding 50% in cash, implying dividends. However, the excess amount is taxed as 'Dividend Distribution Tax' on the company, not the shareholder. This is to combat tax evasion. Any thoughts or questions?