India: Underlying Tax
(1) Documents needed to support the underlying tax claim
The accounts showing the profits out of which the dividend was paid and the first page of the Income Tax Return, which show the tax assessed will be required by the Underlying Tax Group. If the Tax Return is not available, the company’s tax computation which shows the calculation of income tax payable should be sent instead.
(2) Dividend distribution tax
Relevant Profits are reduced by the dividend tax provision shown in the company’s profit & loss account.
The dividend distribution tax is admissible as an underlying tax,which attaches to the dividend:
|Dividend Distribution tax||60,000,000|
Relevant profits are reduced by transfers to:
Debenture Redemption Reserve
Development Allowance Reserve
Export Incentive Reserve
Investment Allowance Reserve
Investment Allowance (Utilised) Reserve
(4) Spared taxes
A copy of the certificate granting tax spared status and the relevant page(s) of the company’s tax computation showing the spared taxes should be sent to the Underlying Tax Group.