Rate of Dividend Distribution Tax
This query is : Resolved
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
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
(Expert)
09 August 2010
Surcharge applicable. It does not depend on income.
Education cess also leviable.
Education cess also leviable.
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
(Expert)
09 August 2010
YES IT IS 15%
SURCHARGE 7.5%
EDU CESS 2%
SHE CESS 1%
CUMULATIVE 16.609%
SURCHARGE 7.5%
EDU CESS 2%
SHE CESS 1%
CUMULATIVE 16.609%
Aditya Maheshwari
(Expert)
09 August 2010
Rate Tax 15 + Surcharge 1.125 + EC .48375 = 16.60875
09 August 2010
DDT including surcharge & edu cess is 16.61 % & This rate is for domestic i.e Indian company
10 August 2010
Thanka a lot for all the experts for having clarified the DDT rate.
Message likes :
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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
(Expert)
10 August 2010
For F. Y. 2010 - 11 surcharge 7.5% even if relates to y. e. 31.03.2010.
10 August 2010
10% As the dividend relates to Financial Year 2009-10.
Aditya Maheshwari
(Expert)
10 August 2010
Rate at the time of distribution is to be considered.
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