corporate dividend tax calculation

15/85*dividend distributed+SURCHARGE+EC&SHEC

is there surcharge other than EC & SHEC?? if yes, what is the rate

12% as surcharge

See, The CDT would be Calculated as per section 115-O(1) @ 15%+ 12%SC+ 3% EC i.e. 17.304%

But now the current rate of Dividend after introduction of Sec 115-O(1B) through FA, 2014 the above 17.304% would be Grossed Up and new final rate of CDT in every case would be 20.9248%.



Note -1: The Surcharge of 12% would exist in every case irrespective of the amount of Dividend.

Note-2: [Dividend here means All Dividend DECLARED (Interim or Final), DISTRIBUTED or Paid]
( + )

[ Deemed dividend u/s 2(22)(a)/(b)/(c)/(d) but excluding Deemed div. u/s 2(22)(e)]

Thanks brother. can you provide me the break-up of above final rate i.e 20.9248

See, 15%(main rate) + 12% Sc + 3% Cess = 17.304%

Now grossing up as per sec 115-O(1B) done as follows:

[DIVIDEND * 100/100-Rate i.e. 17.304%] - (Dividend)

got it. thanks a lot. :)

You are most welcome. N Be Helpful to One Another!