Explain the meaning of the following terms in context of Income Tax Act, 1961: (ii) Economic Double Taxation.

(ii) Economic Double Taxation: Economic double taxation happens when the same transaction, item of income or capital is taxed in two or more state/form but in hands of different persons (because of lack of subject identity). For example, before 01.04.2020, when income earned by a company is taxed both to the company and to its shareholders when distributed as dividend.