Clarification - Dividend Tax Payment Assessment year

[Samit Banerjee]

Dividend Tax Payment Assessment year confusion:- Annual Dividend for a Pvt Ltd company will be declared in the AGM on 30.09.2009. for the financial year 2008-2009. Dividend tax has to be paid after that. Now in the income tax challan what should be the assessment year ? should it be 2009-10 or should it be 2010-11. Dividend will be paid for the financial year 2008-2009 but declared in the financial year 2009-10.

AI Summary

Dividend Tax Payment for FY 2008-2009 Should Use Assessment Year 2010-2011 per Section 115O(1A) Guidance A private limited company plans to declare an annual dividend for the financial year 2008-2009 during its AGM on September 30, 2009. The query concerns which assessment year should be indicated on the income tax challan for the dividend tax payment. Rama Krishana clarifies that since the tax liability arises in the financial year 2009-2010, the assessment year should be 2010-2011. He explains that under subsection 1A of section 115O, the assessment year corresponds to the year in which the tax liability event occurs. Samit Banerjee expresses gratitude for the clarification.