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TO FINANCIAL MANAGEMENT
Presented By:
Arup Bordoloi (06)
Priyanka Mohan (45)
Samujjwal Chakraborty (53)
Sujata Mahanta (58)
TAX PLANNING
CAPITAL STRUCTURE:
Importance in selection of capital structure
Serving the capital base with consistent dividend policy.
Cost of capital to be raised from the market.
Chargeability or otherwise of taxes , i.e., direct and
indirect taxes.
Keeping a margin for ploughing back of profits for future
plan towards diversification, expansion, modernization
and other development aspects.
MEANS OF FINANCING:
Generally, the following means of finance are available
for a new project:
.
.
.
DIVIDEND INCLUDES:
According to Section 2(22)(a) in The IncomeTax Act, 1995
Any distribution by a company to the extent of
accumulated profits, whether capitalized or not, if
such distribution entails the release by the
company to its shareholders of all or any part of the
assets of the company.
DIVIDEND INCLUDES:
According to Section 2(22)(b) in The IncomeTax Act, 1995
Any
distribution
of
debentures/Deposit
Certificates to shareholders and bonus shares to
preference share holders whether capitalized or
not.
DIVIDEND INCLUDES:
According to Section 2(22)(c) in The IncomeTax Act, 1995
Any distribution made to the shareholders of a
company on its liquidation, to the extent to which
the distribution is attributable to the accumulated
profits of the company immediately before its
liquidation, whether capitalized or not
DIVIDEND INCLUDES:
According to Section 2(22)(d) in The IncomeTax Act, 1995
Any distribution made to the shareholders by a
company on the reduction of its capital, to the
extent
to
which
the
company
possesses
accumulated profits, whether such accumulated
profits have been capitalized or not.
DIVIDEND INCLUDES:
Loans/advances to certain
shareholders/concerns[Section 2(22)(e)]
Any payment by a company of any sum by way of
advances or loan,to the extent of accumulated profits to:
(i)An equity shareholder, who is beneficial owner of shares
holding not less than ten percent of the voting power
DIVIDEND INCLUDES:
(ii)Any concern in which such is a member or a partner
and in which he has substantial interest
(iii) Any person, on behalf or for the behalf of any
Such shareholder. Such shareholder here means
a shareholder here means a shareholder who is
Beneficial owner of shares holding not less than 10%
voting share.
DIVIDEND INCLUDES:
Dividends do not include the following:
(i)Loan advanced in the ordinary course of business by the
money lending company
(ii)Dividend paid if set off against loan already
Treated as deemed dividend
(iii)Buyback of shares as per section 77A of Companies
Act.
DIVIDEND INCLUDES:
(iv)Distribution of shares to the shareholders
Of demerged company
DIVIDEND INCLUDES:
Deductions for expenses for dividend income[Section 57(i)
and 57(iii)]
Collection charges
Interest on loan
Any other expenditure
Conclusion
Thank You