Dividend distribution tax rate fy 16-17
This query is : Resolved
19 December 2016
Dividends received by an Indian Company from a specified foreign company (holding of 26 percent or more equity share) are taxable at the lower basic rate of 15 percent (subject to conditions) which, with applicable surcharge and education cess, results in a tax rate of either 15.45, 16.22 or 16.995 percent.
Surcharge in the case of a domestic company receiving dividends from a specified foreign company:
If the total income exceeds INR 10,000,000 = 5 percent on income tax
If total income exceeds INR 100,000,000 = 10 percent on income tax
(Education Cess = Applicable at 3 percent on income tax (inclusive of surcharge, if any)
Dividends declared by an Indian company are tax free for all shareholders. However, the Indian company declaring the
dividend is liable to pay dividend distribution tax (DDT) at 20.358 percent) on the dividends paid/declared/distributed.
This comprises DDT of 15 percent along with a surcharge of 12 percent and education of 3 percent (inclusive of surcharge). Provisions exist to remove the cascading effect of DDT in a holding company-subsidiary relationship.
Surcharge in the case of a domestic company receiving dividends from a specified foreign company:
If the total income exceeds INR 10,000,000 = 5 percent on income tax
If total income exceeds INR 100,000,000 = 10 percent on income tax
(Education Cess = Applicable at 3 percent on income tax (inclusive of surcharge, if any)
Dividends declared by an Indian company are tax free for all shareholders. However, the Indian company declaring the
dividend is liable to pay dividend distribution tax (DDT) at 20.358 percent) on the dividends paid/declared/distributed.
This comprises DDT of 15 percent along with a surcharge of 12 percent and education of 3 percent (inclusive of surcharge). Provisions exist to remove the cascading effect of DDT in a holding company-subsidiary relationship.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Banking Related Issue
- Traces submitting correction statement error
- ITR-Capital Gain
- ITR-3 File/Error Found
- Rent claimed on building given on permissive possession basis
- IT returns for fresh job holders
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
