Is the dividend paid on common stock taxable to shareholders?
The results paid on common inventory are taxed on two stages in the U.S. First at the company stage, as a results comes out from the net earnings after taxation (i.e., the money has been subject to taxation once already) and then at the investors stage. The investors are subject to taxation for the results as standard earnings (O.I.). Dividend for recommended inventory is handled as an interest cost and is tax-free at the business stage.According to Native Indian Income Tax Act a person whatever generate from results and purchase of inventory are completely free because a company already paid tax on earnings he spread results on net revenue after tax i.e. earnings available for investors. And generating from offer of reveal we already paid as tax toss demit A/c.
Expertsmind.com offers unique finance assignment help