Dividends Received from foreign Co.


Dividends Received from foreign Co.

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Certain dividends received from foreign companies to be taxed @ 15% without limiting it to a particular assessment year [Section 115BBD]

Certain dividends received from foreign companies to be taxed @ 15% without limiting it to a particular assessment year [Section 115BBD] [W.e.f. A.Y. 2015-16]

Section 115BBD was introduced as an incentive for attracting repatriation of income earned by Indian companies from investments made abroad. It provides for taxation of gross dividends received by an Indian company from a specified foreign company at the concessional rate of 15% if such dividend is included in the total income for the assessment year 2012-13 or 2013-14 or 2014-2015. With a view to encourage Indian companies to repatriate foreign dividends into the country, the Act has amended section 115BBD(1) by omitting all the assessment years referred to therein so as to extend the benefit of lower rate of taxation without limiting it to a particular assessment year. Thus, such foreign dividends received in financial year 2014-15 and subsequent financial years shall continue to be taxed at the lower rate of 15%.  back

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