11-24-2004, 01:56 AM
Dear S M Raza you are very much right in saying that dividend is not double taxed, but this statement is correct with reference to individual only. Dividend income is double taxed with reference to company, because once company itself pays tax on profit @35%/39% and then when the dividend is declared out of that profit then it is again taxed @5%/10%.(Dividend is always/normally declared out of that profit which has already been taxed)
When the individual files return he does not declare the dividend income as tax exempted rather he states that it is chargeable under Presumptive Tax Regime(PTR) and files statement under section 115(4)
When the individual files return he does not declare the dividend income as tax exempted rather he states that it is chargeable under Presumptive Tax Regime(PTR) and files statement under section 115(4)
