Affiliation privilege

Tax Glossary Definition

Affiliation privilege

Affiliation Privilege – A tax relief provision that allows dividends paid by a resident subsidiary to its parent company to be exempted from, or subject to reduced, taxation—provided the parent holds a qualifying ownership stake. The rule aims to avoid the economic double taxation of profits within corporate groups.

Example: When a parent company owns 80% of a subsidiary, dividends received may be exempt under participation exemption provisions designed to prevent double taxation.

India's Most Trusted
Pro Tax Filer

Discover why we're one of India's most trusted Pro Tax Filers, built on a foundation of accuracy and reliability.

  • We ensure maximum tax benefits.

  • Taxes? Handled by our CAs and experts.

  • Reliable, year-round tax support at no cost.

  • Satisfaction or your money back came twice.

Start Filing

Scan the QR code to Download the app

Mobile App Available on:

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App

Have Questions? Let’s Talk!

Chat With Us

Scan to chat

Scan QR Code

OR
Start Chat
Mobile Apps Available On
This feature is available on our mobile app. Get the app now to access this feature!

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App