14 July 2009
it is tax payable by the domestic company only on the event of payment/declaration of dividend to its share holders. It is applicable in the both the cases final or interim dividend Actually speaking it is tax on distributable profit.
This will be chargeable u/s 115O of income tax tax & the effective rate is 14.025% (12.5%+surcharge 1.25).
The tax needs to be paid with 14 days from the date of declaration/payment/distribution whichever is earlier.
16 July 2009
I Agree with Chetan except on the rate of tax which is 15% and the rate of sucrcharge on tax is 10% and ECess and Se cess is alos applicable whoch makes the total rate at 16.995%.
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