Dividend policy Tax planning with reference to dividend policy involves structuring the payment of dividends in a tax-efficient manner. Here are some key tax planning considerations in relation to dividend policy: Dividend Distribution Tax (DDT): In certain jurisdictions, companies are required to pay DDT on the distribution of dividends. Tax planning can involve assessing the… Read More »
Types of Reserves There are typically two types of reserves that can appear on a corporate balance sheet: revenue reserves and capital reserves. Revenue reserves are create from profits earn by the company and not distributed as dividends to shareholders. These reserves can be used for a variety of purposes, such as reinvesting in… Read More »
Drawbacks of a single member LLC The tax treatment of dividend income in India depends on the type of dividend and the total amount received during the financial year. There are two types of dividends: Regular Dividend: This refers to dividends paid out of the current year’s profits and is now taxable in the… Read More »
What is company limited by shares A company limited by shares is a common business structure in which the liability of its shareholders is restricted to the amount they have invested or committed to invest in the company’s shares. This structure provides a clear separation between the financial responsibilities of the shareholders and the company… Read More »
