DDT grossing up

For the purposes of determining the tax on distributed profits payable in accordance with this section, any amount by way of dividends referred to in sub-section (1) as reduced by the amount referred to in sub-section (1A), shall be increased to such amount to such amount as would, after reduction of the tax on such increased amount at the rate specified in subsection (1), be equal to the net distributed profits.

The effective rate shall be as under:

    Tax rate  15%

  Add:  12% Surcharge  1.8%

  Add:  3% Edu. Cess  0.504%

    Total tax rate  17.304%