cdt gross up

The Finance (No.2) Bill, 2014 proposes to levy dividend distribution tax by grossing up the dividend payable for the purpose of computing liability towards dividend distribution tax. 

DWith the grossing up, the effective tax rate comes be 20.47%, with the result, there will be an additional tax liability of 3.475% (based on 3% cess, in 2014). (Earlier it was 16.995% (15% tax + 10% surcharge + 3% education cess thereof)