Total income of XYZ Limited includes the income of dividend of ₹10 lakh paid by a U.K.-based foreign company in which XYZ Limited holds 30% of the equity share capital. ₹50,000 has been spent for earning such dividend. T

CS Executive · Tax Laws and Practice · PYQS · June 2018
Total income of XYZ Limited includes the income of dividend of ₹10 lakh paid by a U.K.-based foreign company in which XYZ Limited holds 30% of the equity share capital. ₹50,000 has been spent for earning such dividend. The dividend income so received by the company from the U.K.-based foreign company and the tax rate shall be :
(A) Not taxable being exempt u/s 10(34)
(B) Taxable @ 15% of ₹10 lakh
(C) Taxable @ 15% of ₹9.5 lakh
(D) Taxable @ 10% of ₹9.5 lakh

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

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