Dividend dsitribution tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2012 Dear,
We are a Pvt ltd Company,& planning to pay dividend to shareholders (i.e.) directors.
1) What will be the tax treatment for co.(dividend distribution tax rate)
2) Texablity in the hands of directors ?

Thanks:

Rahul

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 May 2012 1) (a)16.2225 % if total income > Rs. 1 crore.
(b) 15.75% if total income < Rs. 1 crore.
2) If DDT is paid as above, dividend is exempted in the hands of share holders. Reference :- Section 10(34) of the Income tax Act,1961.

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