Divident distribution tax

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Querist : Anonymous

Querist : Anonymous (Querist)

02 June 2010 Is surcharge is aplicable to every companies declaring divident(FY 2009-10)?
Then wht is the rate?

Sohil Ganeriwala

Sohil Ganeriwala (Expert)
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02 June 2010 Yes surcharge is applicable to all companies declaring dividend, the rate is 16.995%.

Sohil Ganeriwala

Sohil Ganeriwala (Expert)
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02 June 2010 Yes surcharge is applicable to all companies declaring dividents, the rate is 16.995%.

Querist : Anonymous

Querist : Anonymous (Querist)

02 June 2010 Is surcharge payable without considering the amount profit whether it exceeded 1crore or not?

Sohil Ganeriwala

Sohil Ganeriwala (Expert)
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02 June 2010 Rs.1 cr limit should not be considered in case of dividends. Hence surcharge is applicable on any amount paid as divedends.

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Pankaj Jhawar

Pankaj Jhawar (Expert)
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03 June 2010 The rate of surcharge will be 7.5% and the same will be only applicable if it exceeds the limits

Pankaj Jhawar

Pankaj Jhawar (Expert)
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03 June 2010 Sorry surcharge is appliacle @7.5% - even though the inocme is nil

Sohil Ganeriwala

Sohil Ganeriwala (Expert)
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03 June 2010 Dear Pankaj,
the F.Y. in consideration is 09-10 wherein the surcharge rate was 10% hence it will be 16.995% only.

Sohil Ganeriwala

Sohil Ganeriwala (Expert)
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03 June 2010 Surcharge at 7.5% is for F.Y. 10-11.

Pankaj Jhawar

Pankaj Jhawar (Expert)
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03 June 2010 yes any dividend paid for the fy 09-10 is to be paid in 10-11 and thus new rates will apply

Sohil Ganeriwala

Sohil Ganeriwala (Expert)
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03 June 2010 Dividend distribution tax is to be paid when the dividend is declared or distributed or paid. hence if dividend is declared prior to 31.03.2010 the surcharge would be 10% if declared or paid after 1.4.2010 it will be 7.5%

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2010 Companies will declare final dividend generally after end of relevant financial year.SO the aplicable rate never will be the rate of relevant financial year. Is it?

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