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Tax queries 780 views 2 replies

Dear All,


What is the Dividend Distribution Tax for the AY 2011-12..?
Copmputation of DDT on dividrnd of 20,00,000..?

Waiting for the reply from ur side.. Thanks in advance..


Regards,

Rohtash Hurria

Replies (2)

 Dividend Distribution Tax
Dividend distributed by an Indian Company is exempt from income-tax in the hands of many shareholders. The Indian Company is liable to pay Dividend Distribution Tax (DDT) @ 16.609 percent (i.e. inclusive of surcharge and education cess) on such dividends
The amount of dividend declared by the parent company (i.e. holding more than 50 percent of capital) is likely to be reduced by the amount of dividend received from its subsidiary company for the purposes of computing DDT payable by the parent company if:

- such dividend is received from its subsidiary

- the subsidiary has paid DDT on such dividend; and

- the parent company is not a subsidiary of any other company

Further, dividend paid to any person for and on behalf of New Pension System Trust is likely to be reduced.
Income received by unit holders from a Mutual Fund is exempt from income-tax. The Mutual Fund (other than equity oriented mutual fund) is likely to pay income distribution tax of:

- 27.681 percent (inclusive of surcharge and education cess) on income distributed by a money market mutual fund or a liquid fund

- 13.841 percent (inclusive of surcharge and education cess) on income distributed to any person being an individual or a Hindu Undivided Family by a fund other than a money market mutual fund or a liquid fund; and

- 22.145 percent (inclusive of surcharge and education cess) on income distributed to any other person by a fund other than a money market mutual fund or a liquid fund.

Computation for Dividrnd of 20,00,000..?

Urgent required..


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