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    Tax payment on dividend payment to beneficial owner of shares

    Posted By : Work / Published on : 18-Jun-2022 05:32 AM / View : 137 / Comment : 1

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    Dear Members,

    Greetings!!

    If shares are registered on the name of Mr.A ( registered Owner) in Regsiter of Members, and beneficial interest in held by Mr. B ( beneficial owner) then income tax payment is to be made by whom on dividend amount, Mr. A or Mr. B, please suggest.

    Thanks in Advance.
    Read more on : payment shares owner beneficial dividend

    • Dear Members 

      As Mr. B is the beneficial owner of the company entitled to receive dividend will also be liable to pay income tax on such dividend amount.

      Under section 194 of the Income-tax Act, 1961:

      The company declaring the dividend will have to deduct TDS at 10% on dividend income above Rs.5000 for an individual; this rate will be increased to 20% in the absence of PAN submission by the recipient of dividend income.

      Hope this may be helpful!

      20-06-2022 / 05:27:03 AM
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