Dividend distribution tax-urgent query

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pavan kumar ganagalla (Querist)
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07 March 2015 GOOD MORNING EXPERTS.................
PROPOSED DIVIDEND=100000
DDT =15%
DDT=100000*15/115=13043
DDT=100000*15/100=15000
DDT=100000*15/85=17647

WHICH OF THE ABOVE METHODS IS CORRECT AS PER FINANCE ACT 2014 TO CALCULATE DDT??????????????????????????????????????????????????????????????
PLEASE REPLY AS SOON AS POSSIBLEEEEEEEEEEEEEEEEEEEEE

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 March 2015 Last method is correct.

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pavan kumar ganagalla

pavan kumar ganagalla (Querist)
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07 March 2015 thank u sir
if possible please explain the reason

pavan kumar ganagalla

pavan kumar ganagalla (Querist)
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07 March 2015 thank u sir
if possible please explain the reason

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 March 2015 In the pre 2003 period, shareholders were required to pay tax on gross dividend. But in post 2003 period, company pays tax on the dividend amount net of taxes.
Reason for grossing up is said to remove the above noted anomaly.

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