half dividend paid through cheque!

A

armand_dcosta

New Member
#1
#1
I had 900 shares in Incap Ltd and the company declared dividend at one rupee per share.
I received a cheque from them instead of direct cedit to my bank account and on top of that, it was only half the dividend due ie. Rs. 450/-.

It mentioned that tax had already been paid and the dividend was tax free.
Can 450 have been paid to tax and another 450 for dividend?
 
M

madhusar

New Member
#2
#2
Dividend in the hands of the shareholder is tax-free. However, the companies have to pay a dividend distribution tax. The DDT (Dividend Distribution Tax) is certainly not 50%.
It will normally be in the order of 15% and a surcharge of 3%.

Tax experts, correct me if I am wrong.
 
V

vasa1

Active Member
#3
#3
armand_dcosta said:
I had 900 shares in Incap Ltd and the company declared dividend at one rupee per share.
I received a cheque from them instead of direct cedit to my bank account and on top of that, it was only half the dividend due ie. Rs. 450/-.

It mentioned that tax had already been paid and the dividend was tax free.
Can 450 have been paid to tax and another 450 for dividend?
Click to expand...
Did you sell any shares on or around the record date?
 
A

armand_dcosta

New Member
#4
#4
no, I sold them well after the record date. I sent an e-mail to the company, they said that the dividend declared at the AGM was 5% and not 10%. Must have been reduced from 10% to 5% during the AGM....
 
V

vasa1

Active Member
#5
#5
armand_dcosta said:
no, I sold them well after the record date. I sent an e-mail to the company, they said that the dividend declared at the AGM was 5% and not 10%. Must have been reduced from 10% to 5% during the AGM....
Click to expand...
Okay! Though this should also be reported to the Stock Exchange by the company.

Anyway, good you're out of it.
 
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