23 August 2014
When is surcharge applicable on Dividend Distribution Tax? What is the amount of dividend distribution tax on dividend of Rs. 514532/- for Assessment Year 2014-15?
23 August 2014
The tax on distributed profits u/s 115-O shall be payable @15% plus surcharge @10% plus Education Cess (EC) @2% plus SHEC @1% of amount of dividend so declared, distributed or paid. Thus, dividends paid by a domestic company are subject to the DDT at an effective rate of 16.995%. It may be noted that surcharge @ 10% of tax will be payable irrespective of the amount distributed under these sections.
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