Hi my client is a Private Company , and they have declared dividend and my query is whether DDT & TDS both need to be deducted or , any one of them , if so @ what rate????
YOGESH
(STUDENT)
(128 Points)
Replied 02 June 2015
The principal officer of an Indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends within India is liable to deduct tax at source on dividends.
Tax is to be deducted at the time of credit of such amount to account of payee or at the time of payment whichever is earlier.
Tax is to be deducted at the rate of 10%. If the recipient of income doesn’t furnish his PAN to deductor then TDS is to be deducted @ 20%.
Assessee can apply to assessing officer for no TDS or TDS at lower rate under Section 197.
TDS is not required to be deducted if
Diviend Distribution Tax to be done @ 15% + SC + EC
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