Rate of DDT

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2011 What is the rate of Dividend distribution Tax in the brand new budget 2011 which has just came?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 March 2011 Certain amendments are in the section but the rate is not changed meaning thereby it remains at 15%.

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2011 but what is about 16.2225%

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 March 2011 15 % is the tax rate as per section 115O. It should be increased by surcharge ,if applicable, further increased by education cess and secondary and higher education cess. However, calculation of 16.225% is not known to me.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 March 2011 I stand corrected.
The Finance Bill,2011 has amended the rate of surcharge @ 5% vide section 4 of the said bill. Accordingly, if the said bill becomes an act, the rate of DDT for those companies to whom surchage is applicable will be as follows:-

DDT- BASIC RATE - 15.000
SURCHARGE @ 5% - 0.750
EDUCATION CESS @2% - 0.315
SECONDARY&HIGHER EDUCTION CESS @1% - 0.158
TOTAL - 16.223

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now