Rate of DDT

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Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2011 What is the rate of Dividend distribution Tax in the brand new budget 2011 which has just came?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 March 2011 Certain amendments are in the section but the rate is not changed meaning thereby it remains at 15%.

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2011 but what is about 16.2225%

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 March 2011 15 % is the tax rate as per section 115O. It should be increased by surcharge ,if applicable, further increased by education cess and secondary and higher education cess. However, calculation of 16.225% is not known to me.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 March 2011 I stand corrected.
The Finance Bill,2011 has amended the rate of surcharge @ 5% vide section 4 of the said bill. Accordingly, if the said bill becomes an act, the rate of DDT for those companies to whom surchage is applicable will be as follows:-

DDT- BASIC RATE - 15.000
SURCHARGE @ 5% - 0.750
EDUCATION CESS @2% - 0.315
SECONDARY&HIGHER EDUCTION CESS @1% - 0.158
TOTAL - 16.223

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