The dividend distribution may be in cash or kind entailing the release of a company's assets.
Distribution by a company to its shareholders on reduction of its share capital to the extent of accumulated profits of the company.
All such 'dividends' received from a domestic company, whether interim or final, are exempt from tax in the hands of the investor.
On the other hand, dividend received from an investment in a foreign company is taxable.
However, an investor can reduce his or her tax burden to some extent by claiming deduction for related expenses, such as collection charges, interest paid on money borrowed to purchase the stock, if any.
Zero tax on long term capital gains from equity...
Image: Stock dealers execute client request in hectic early morning trading | Photograph: Sajjad Hussain/AFP/Getty Images
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