question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends
what we have been is given that :-
A company pays a dividend of 15% on its ten-rupee shares and from which it deducts income tax at the rate of 22%. so how to Find the annual income of a man who owns one thousand shares of this company. please provide explanation sothat all question of this type can be solved easily.
Q no. 14, exercise 3, ML Publication, share and dividends
Nominal value of 1 share = Rs. 10
Nominal value of 1000 shares = 1000 × 10
= Rs. 10,000
∴ Dividend = 15 % of Rs. 10,000
= (15/100) ×10,000=.1,500
∴ Income tax paid = 22 % of Rs. 1,500
= (22/100) ×1,500=.330
His net income = Rs. 1,500 – Rs. 330
= Rs. 1,170 Ans.