Dividend distribution tax
This query is : Resolved
10 August 2013
A company declared Final Dividend for the Financial Year ended as on
31.03.2013 and Shareholders had approved the dividend in AGM held on 31.05.2013
and company paid the dividend on 02.06.2013 as per the AGM approved the dividend
, now my question is
A. What will be the Assessment Year for the deposit of the Dividend Distribution
Tax applicable on
dividend paid by the company related to the Financial Year 2012-13 whether
i.e.
1. ASSESSMENT YEAR 2013-14 – Since the dividend declared for the
F.Y.2012-13
2. ASSESSMENT YEAR 2014-15 – Since the dividend was distributed on the
05.06.2013 with in the F.Y.2013-14 .
31.03.2013 and Shareholders had approved the dividend in AGM held on 31.05.2013
and company paid the dividend on 02.06.2013 as per the AGM approved the dividend
, now my question is
A. What will be the Assessment Year for the deposit of the Dividend Distribution
Tax applicable on
dividend paid by the company related to the Financial Year 2012-13 whether
i.e.
1. ASSESSMENT YEAR 2013-14 – Since the dividend declared for the
F.Y.2012-13
2. ASSESSMENT YEAR 2014-15 – Since the dividend was distributed on the
05.06.2013 with in the F.Y.2013-14 .
12 August 2013
AY will be 2013-14 since the dividend pertains to the FY 2012-13.
12 August 2013
But the dividend has been paid in the current year,
Can u justify your answer .Which section of IT says this?
Can u justify your answer .Which section of IT says this?
12 August 2013
Section 115-O(3) provides that DDT shall be paid within 14 days of
(a) declaration of any dividend; or
(b) distribution of any dividend; or
(c) payment of any dividend,
WHICHEVER IS EARLIER.
Since the dividend declared will be shown in the financial statements for the year ending 31st March, 2013 the AY will be AY 2013-14.
Also please note that TDS liability for March, self assessment tax for the year 2012-13 shall be paid in the FY 2013-14. But the AY will be AY 13-14 and not AY 14-15.
The date of payment is not the criteria. The criteria is for which period tax has been paid.
(a) declaration of any dividend; or
(b) distribution of any dividend; or
(c) payment of any dividend,
WHICHEVER IS EARLIER.
Since the dividend declared will be shown in the financial statements for the year ending 31st March, 2013 the AY will be AY 2013-14.
Also please note that TDS liability for March, self assessment tax for the year 2012-13 shall be paid in the FY 2013-14. But the AY will be AY 13-14 and not AY 14-15.
The date of payment is not the criteria. The criteria is for which period tax has been paid.
10 November 2015
Thanks for the reply
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