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Question

Dividend distribution tax is payable by:

A
Shareholders to government
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B
Shareholders to company
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C
Company to government
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D
Holding to subsidiary company
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Solution

The correct option is C Company to government
Dividend distribution tax is the tax imposed by the Indian Government on Indian companies according to the dividend paid to a company's investors. At present, the dividend distribution tax is 15% on the gross amount of dividend as per Section 115O

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