Virat Ltd. is a widely held company. It is currently considering a major expansion of its production facilities and the following alternatives are available: Particulars Alt-1 (₹) Alt-2 (₹) Alt-3 (₹) Share capital 50,00,
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2014
Virat Ltd. is a widely held company. It is currently considering a major expansion of its production facilities and the following alternatives are available: Particulars Alt-1 (₹) Alt-2 (₹) Alt-3 (₹) Share capital 50,00,000 20,00,000 10,00,000 14% Debentures 20,00,000 15,00,000 18% Loan from Bank 10,00,000 25,00,000 Expected rate of return before tax is 30%. Rate of dividend of the company since 1995 has not been less than 22% and date of dividend declaration is 30 th June every year. Which alternative should the company opt with reference to tax planning ?
Topics: Income Tax
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