Economic double taxation

Tax Glossary Definition

Economic double taxation

Economic double taxation arises when the same income is subjected to tax more than once in the hands of different taxpayers. It typically occurs when corporate profits are taxed first at the company level and subsequently taxed again at the shareholder level upon distribution as dividends. This dual taxation reduces the effective return on investment, potentially discouraging capital formation and slowing economic growth.

Example: A corporation pays income tax on its annual profits, and when those profits are distributed as dividends, shareholders also pay personal income tax on the same amount—illustrating economic 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