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Hi there!!Firstly, I would like to answer this question as I see your actual doubt specified as a comment to one of the answers(link :https://www.quora.com/Why-corporate-dividend-tax-is-not-double-taxation/answer/Sumit-R-Das/comment/30097914). Though the other Quora members rightly answered, my answer would be a detailed addition to that.I will provide you few main differences which depict that a company and a partnership firm is different for all purposes not only for legal purposes :A company has a separate legal status distinct from its shareholders, while a partnership firm has no legal existence distinct from its partners.Maximum no.of partners in a partnership firm is 20(in case of banking,it is 10) and maximum no.of members in case of a private company is 200 and a public company is unlimited. ( So shareholder is owner of the company only to the extent of his share and not the entire affairs of the company)Insolvency or death of a shareholder does not affect the existence of a company. That means a company never dies unless it is officially wound up as per Companies act, 2013. On the other hand, a partnership ceases to exist if any partner retires, dies or is declared insolvent.In case of company the liability of shareholders is limited (except in case of unlimited companies) to the extent of face value of shares or to the extent of guarantee, whereas, in case of partnership the liability of partners is unlimited.In case of a company, its members have no right to take part in the day to day management and the affairs are managed by its directors( and they say shareholders are the owners, when they don’t even have right in day to day affairs, period!) On the other hand every partner of a firm has a right to participate in the management of the business unless the partnership deed provides otherwise.A shareholder is not an agent of a company and has no power to bind the company by his acts. A partner is an agent of a firm. He can enter into contracts with outsiders and incur liabilities so long as he acts in the ordinary course of firm’s business.There exists many more differences between a company and a partnership firm, but I have highlighted the above difference so as to depict that a company and its shareholders are not one and the same.Now coming to your doubt which you posted in the comments to one of the answers as “What seems logical according to me is that for taxation purposes both should be considered same and therefore either Income tax or CDT must be paid.”Academic perspective :My dear friend, Income tax is the tax that you have to pay for earning the income through different sources like business or profession, house rentals etc., The impact and the incidence will be on the same person i.e., the person who earns the income has to pay the tax. So, a company pays income tax on the profits it earned by conducting the business. It is earned by the company and not the shareholders.On the other hand, Corporate dividend tax is levied on the dividend that is distributed to the shareholder . So it is basically the income of shareholder which he’s earning on his fair share of income. However, when the company pays any amounts it has to check its taxability aspects similar to the concept of deduction of tax at source i.e., TDS provisions)Also there exists provisions that the same is exempt in the hands of individuals and taxable in the hands of companies.Logical perspective :Public limited companies have no maximum limit on having number of shareholders. Suppose if the dividend distribution tax is imposed in the hands of shareholders and not on the company, there may be possibilities of evading tax by the individuals(not all individuals are responsible tax payers !!!!) and it would be different to track whether the tax compliance has been met due to voluminous number of individuals. In order to avoid this, the taxation on dividends might have been imposed on the companies, since companies are mandatorily required to file their income tax returns and follow the applicable provisions and it can’t simply evade the tax on the dividends it distributed.Hope this helps you in better understanding !!!Happy day :-)Edit :I would also like to address the latest provision inserted by Finance Act, 2016 through section-115BBDA in order to remove the ambiguity and vertical inequality of the rate of tax that is charged and is explained as follows :Hope this provides a better clarification .

Attention all the Directors and Dear Professionals, this post can be of your use on ground of varied grounds.Well, strike off / Closing of companies which is inoperative is of utmost importance because of unnecessary compliance cost, Liabilities on the part of Directors . below is the procedure which can be adopted for striking off of company .Note:-Please Close the Bank account of the company (Current Account) if opened .Since the strike off of company is entirely covered by Companies act , 2013 here are the steps below:·Strike off by ROC under Section 248(2) of the Companies Act 2013:The company can file an application in E-form STK-2 with Registrar of Companies suo-motto after extinguishing all its liabilities, by special resolution or with the consent of seventy five percent of the members in terms of paid up share capital, to the Registrar for removing the name of the Company on all or any of the above mentioned grounds:1. Holding of Board Meeting2. Extinguishment of all Liabilities3. Holding for General MeetingThe Company will hold the general meeting of shareholders by passing a resolution for striking off the name of the Company with the approval of 75% of members as per paid up share capital of the Company and after passing of Special resolution Company will file E-form MGT-14 within 30 days.4. Application to ROC by ROC by CompanyApplication in Form STK- 2 to be filed by the Company (Government filing fees of INR 5000) along with following documents:Indemnity Bond duly notarized by every director in Form STK 3.A statement of accounts containing assets and liabilities of the company made up for a day, not more than 30 days before the date of application and certified by a Chartered Accountant.An affidavit in Form STK 4 by every director of the company.CTC of Special Resolution duly signed by each Director.In the case of a Company regulated by any other authority, approval of such authority shall also be required.A statement with respect to any pending litigations, involving the Company.Bank Account closing certificate.What is the status of Assets and Liabilities of Company after strike off?The liability of every director, manager or other officer, who was exercising any power of management, and of every member of the company dissolved under sub-section (5), shall continue and may be enforced even after strike off.Another concern for a company whose name has been struck-off by the ROC is that Asset, Rights, Cash balances and other Current or Non-current Assets of the company is vested with whom? In the absence of any specific provisions in the Companies Act, 2013, it is highly debatable issue as to status of assets after strike off.

Dear Neha,Dividend distribution tax (DDT) is going to increase burden on the pockets of shareholders. Earlier it was just 10% (+ cess) to be deducted by the payor. Henceforth, it’s going to be credited to the shareholders without any such deduction, which means that it would be taxable in the hands of the investors as per the applicable income tax slab. It would not affect the ones falling in the regime of upto 10% income tax. But the one supposed to pay 15% or more tax on one’s income is going to be affected for sure. Hope this clarifies your concerns. You may ask more putting more words to comments.