Total income of XYZ Limited includes the income of dividend of 7 10 lakh paid by a U.K. base foreign company in which XYZ Limited holds 30% of the equity share capital. The dividend income so received by the company from the U.K. base foreign company in A.Y. 2019-20 shall be:
A. Taxable @ 15% of such income
B. Not taxable being exempt u/s 10(34)
C. Taxable at the normal rate applicable on domestic company
D. Taxable @ 10% of such income
Answer:A
Total income of XYZ Limited includes the income of dividend of 7 10 lakh paid by a U.K. base foreign company in which XYZ Limited holds 30% of the equity share capital. The dividend income so received by the company from the U.K. base foreign company in A.Y. 2019-20 shall be:
A. Taxable @ 15% of such income B. Not taxable being exempt u/s 10(34) C. Taxable at the normal rate applicable on domestic company D. Taxable @ 10% of such income