Assessment Year for dividend distribution Tax

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srinivasan (Querist)
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19 July 2011 The tax on Dividend Distributed (DDT) by the company is to be paid u/s 115-O within 14 days from the date of
(a)declaration of any dievidend; or
(b)distribution of any dividend; or
(c)payment of any dividend. which ever is earlier.

Normally the dividend for the year ending March is declared only in the AGM which will take place in the subsequent financial year.

For eg. the books of accounts are closed for the year ending 31.3.2011. The dividend would be declared in the AGM say conducted in June 2011.

Now the question is What is the AY which the DDT has to be paid?

Is it AY 2012-13 since the trigerring point for the DDT would the financial year in which the dividend is declared which in the instant case is FY 2011-12.

or is it AY 2011-12 as the dividend relates to the closure of books and declared out of accumulated profits for the year ending 2011.

The details of DDT has also be filed in the ITR and if the wrong AY is being incorporated it triggers the demand while 143(1) is being generated.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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19 July 2011 The relevant A.Y. for your case is A.Y.2012-2013

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srinivasan

srinivasan (Querist)
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19 July 2011 IT department is of the view that the relevant assessment year is only 2011-12 as it eminates from the profits for the ye 2011. They are not even ready to take cognizance to the guidance note issued by ICAI in this regard.

If you can refer any dept. circular or case law clarifying this point would help me out.

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