In the light of the above two statements, choose the correct answer from the options given below

Assertion (A): Tax should not be charged on dividend income from the shareholders

Reason (R): Some economists are of the opinion that when tax has already been paid on the profit of the company and balance is distributed as dividend to the owners, tax need not be levied on them

A

Both A) and R) true and R) is the correct explanation of A)
B

Both A) and R) true but R) is NOT the correct explanation of A)
C

A) is true but R) is false
D

A) is false but R) is true

Question