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Ddt rate for f.y.14-15

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BPAst (Querist)
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24 August 2014 Dear Sir,
My client co is planning to declare dividend for the year ended 31-3-2014 what is DDT payable by it. whether ddt to be grossed up? can you please explain the grossing up with an example.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 August 2014 Rate remains same. 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.

See below link for effect of new changes--

https://www.simpletaxindia.net/2014/07/dividend-distribution-tax-ddt-increased.html

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