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Hello sir ,
in question no 76 they mentioned preference share as long term liability …so why they didn’t took tax relief?
Dividends never get tax relief, whether they are ordinary dividends or preference dividends.
Redeemable preference shares are treated though the same as debt in the financial statements, but as far as tax is concerned the dividends on them are still dividends and do not get tax relief. Only ‘true’ debt borrowing gets tax relief on the interest.
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