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  • RE: Foreign (Indian) Dividend - tax credit

    Hi, the question was regarding my tax liability in the UK not India. are you saying I don't need to pay any tax on these dividends in UK?
  • RE: Foreign Dividend - tax credit

    thank you for the response. However the DDT was never paid by me but the company & no documentation is/was/will be provided. I found this link on the HMRC website but failed to obtain the underlying rate that can be taken credit of. https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt9551 please can you look at this again? thank you
  • Foreign (Indian) Dividend - tax credit

    Hello, I'm correcting an error in my self-assessment wrt Dividends received in India & need help. I have posted the same thread in the personal tax forum too, awaiting reply. Until 2020, the income tax laws in India provided for an exemption of the dividend income received from Indian companies by the investors by levying a tax called the Dividend Distribution Tax (DDT) on the company paying the dividend. I quote from some Indian tax websites: " Any domestic company declaring/distributing dividend is required to pay DDT at the rate of 15% on the gross amount of dividend as mandated under Section 115O. Therefore the effective rate of DDT is 17.65% on the amount of dividend." This DDT works out 20.56% including surcharge & cess. However as it was charged at the company level, i did not get any div vouchers stating the tax paid & these were exempt from my Indian income tax returns. Based on the DTA between India & UK a dividend tax credit of max 15% is available. Can i claim this tax credit i.e. 15% eventhough i dont have any documentation / div voucher, when filing my UK tax? My accountant is not too sure, as i have no documentation to prove this..hence the question here. Is this DDT by Indian companies something that's understood by HMRC by default? Thank You
  • Foreign Dividend - tax credit

    Hello, I'm correcting an error in my self-assessment wrt Dividends received in India & need help. Until 2020, the income tax laws in India provided for an exemption of the dividend income received from Indian companies by the investors by levying a tax called the Dividend Distribution Tax (DDT) on the company paying the dividend. Any domestic company which is declaring/distributing dividend is required to pay DDT at the rate of 15% on the gross amount of dividend as mandated under Section 115O. Therefore the effective rate of DDT is 17.65%* on the amount of dividend. This DDT works out 20.56% including surcharge & cess. based on the DTA between India & UK a dividend tax credit of max 15% is available. Can i claim this tax credit ie 15% eventhough i dont have any documentation / div voucher provided..none is provided as the div was taxed at company level, when filing my UK tax? is this DDT by Indian companies something that's understood by HMRC by default? Thank You