corporate divident tax

[krishan sharma]

dear sir

I have quiry  of cascAding effect in case charge of corporate divident tax on divident income of share holders insteat  the divident is a part of company pfofite and alldeady charged tax on such profite as income tax please claering the issue immedaitely

[CA Rachit Agarwal]

Corporate Dividend Tax is levied by IT Act, 1961 on the distribution of income to shareholders. Even though the income has already suffered the income tax, the part of profit to be distributed to the shareholders is liable to CDT.

[krishan sharma]

dear sir

as per your reply

corporate  divident tax is a part of shareholder profite

and indirectly paid to goverment as additional income tax

AI Summary

Corporate dividend tax applies to distributions even when company profits have been taxed, creating potential additional taxation on shareholders. Corporate Dividend Tax is a statutory levy on income distributed to shareholders that applies to the portion of company profit declared and distributed as dividends, even though those profits have already been subject to company income tax, resulting in an additional tax charge on the distributed profit and a potential double taxation or cascading effect.