Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Corporate dividend tax wrongly calculated and deposited

570 views

Save Share

Join Us Follow Us Add as Source

Jibin Thomas

CA Final B COM(H)

108 Points Posted on 17 September 2014

Dear members ..

One of my client declare dividend of 850000 and paid CDT @ 15.45% WHICH COME AT Rs 1,31,325.But did't calculated the surcharge of 10% on the CDT AMOUNT & paid according to 15.45%.The correct calculation come at Rs 1,44,458 @ 16.995%.Dividend was declared on 19/08/2014 and cdt of Rs 1,31,325 paid within 14 days.What should be the next step and how much amount further need to be paid along with interest.Thanks.Please Reply ASAP

Replies (2)

P C Agrawal

Registered independent director Past Ch

5233 Points Posted on 17 September 2014

As per Sec.115-P of IT Act interest is payable on the shortfall amount @ 1% for every month or part thereof for the period of delay, beginning on the date immediately after the last date on whcih such tax was payable and ending with the date on which the tax is actuallly paid.

You can therefore pay the difference amount with interest by separate challan and inform IT Department accordingly by letter attaching copies of challans.