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DDT grossing up

Tawfeeq Yousuf (Student) (38 Points)

17 December 2017

Kindly, teach me how to gross up

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3 Replies

Prajjwal Kaushik (Finance Professional) (6216 Points)
Replied 18 December 2017

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%