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Claiming of ddt paid

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Sai Kiran

Student

21 Points Posted on 12 June 2014

Why Can't i claim the DDT deducted by the company as refund if my Net taxable income is less than 2,00,000

Just like claiming refund of TDS

Pls support answer with sec. no. or rule no. or proper reason

Eg. if an individual has 2 incomes

1. Income from other sources - int. 1,00,000 for which 10,000 TDS deducted

2. Dividend income of 25,000 on which DDT is paid at 16.955%

Replies (1)

Yogesh Goel

Chartered Accountant

168 Points Posted on 12 June 2014

Simple beacuse there are no provisions in Income tax for such claim of DDT.

For claiming of deduction of TDS there are specific provsions in Law. DDT is is directly a hit on Shareholders income. earlier peoples used to pay tax on dividend when when ther was no DDT. Mr. P Chidambaram brought this concept in FA 1997 bearing a direct hit on amount being paid as dividend.

further, TDS when deductedis deposited by deducter in your PAN Account since it is tax deposited on your behalf. But DDT is niether Income tax, nor paid on behalf of any assessee or dividend payee which could enable its claim. From the very begining, lawmaker had no intention to give any credit of DDT, so there are no rules/section/provisions in law to enable or deny its claim. It is a totally different thing then TDS.