Rate of Dividend Distribution Tax

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BPAst (Querist)
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09 August 2010 Dear Sir,
My client is a pvt. ltd. co having less than one crore income & wants to declare dividend ?
what is the rate of dividend distributed tax to be paid by this company.
I feel it is 15% for the A.Y. 10-11 but whether Surcharge & Edn. Cess applicable ? if yes what is rate ? please give seperately as well as cumulative rate of tax.
Thanks

Aditya Maheshwari

Aditya Maheshwari (Expert)
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09 August 2010 Surcharge applicable. It does not depend on income.

Education cess also leviable.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 August 2010 Dividend distributed by an Indian Company is exempt from income-tax in the hands of many shareholders. The Indian Company is liable to pay Dividend Distribution Tax (DDT) @ 16.609 percent (i.e. inclusive of surcharge and education cess) on such dividends

CA Sanat Pyne

CA Sanat Pyne (Expert)
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09 August 2010 YES IT IS 15%
SURCHARGE 7.5%

EDU CESS 2%
SHE CESS 1%

CUMULATIVE 16.609%

Aditya Maheshwari

Aditya Maheshwari (Expert)
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09 August 2010 Rate Tax 15 + Surcharge 1.125 + EC .48375 = 16.60875

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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09 August 2010 DDT including surcharge & edu cess is 16.61 % & This rate is for domestic i.e Indian company

BPAst

BPAst (Querist)
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10 August 2010 Thanka a lot for all the experts for having clarified the DDT rate.

Message likes : 1 times

BPAst

BPAst (Querist)
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10 August 2010 Please clarify regarding the DDT if the dividend declared & paid in the Financial year 10-11 for the year ended 31.03.2010. whether surcharge is 7.5% or 10%

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 August 2010 For F. Y. 2010 - 11 surcharge 7.5% even if relates to y. e. 31.03.2010.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 August 2010 10% As the dividend relates to Financial Year 2009-10.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 August 2010 Rate at the time of distribution is to be considered.

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