DDT Tax rate on dividend declared in F.Y. 10-11 (Sec.115-O)

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Dividend Distribution Tax (DDT) rate for two assessment years is –  

                                                            A.Y. 2010-11                 A.Y. 2011-12

                        Basic Rate                                15                                 15                    

                        Surcharge                                 10*                               7.5*

                        Total Cess                                 3                                  3

 * Suppose Income of the company exceeds Rs. 1 crore

If Annual General Meeting is held on let say 20th Sep., 2010 and declared dividend of let say 5 Cr.

 Whether we need to pay DDT applicable for A.Y. 2010-11 or A.Y. 2011-12.

According to me it should be 15% + 7.5% + 3% but do any body have any precedent or supporting case law.

Replies (3)

The said Dividend was declared on 20.9.10. it means it was in the year 2010-11 i.e A y 2011-12.

Hence Tax rate shall be applicable for AY 2011-12

Thanks for valuable info

 

 AY 2010-11--- DDT 16.9955%

AY 2011-12----DDT 16.608%

For the financial year 2011-12 Dividend Distribution Tax shall be paid as under:

 

Basic Rate: 15%

Surcharge: 5%

Cess: 2+1=3%

Total Rate= 16.2225%

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