Dividend distribution Tax

The company declared dividend on 21st June 2011

Previous year 2010-11

Assessment year 2011-12

1 )   My Question is that while payment of dividend distribution tax , which tax rate is to be taken

A )  rate of financial year 2010-11   16.60875%

B ) rate of financial year 2011-12    16.2225%

 

2)   My another Question is that while payment of dividend distribution tax online in Challan ITNS 280 which Assessment year is to be taken?

 

3)   My another Question is that while filing the return ITR – 6 which date is to be taken for the purpose of declaration of distribution of payment of dividend?

Replies (3)

The answers are :

1) the rate has to be 16.60875% having the surcharge of 7.5%, as the same is applicable for the F.Y.2010-11, i.e., the year for which the dividend is paid.

2)A.Y.2011-12

3)Declaration means when the dividend has been accepted by the shareholders in the AGM, i.e., AGM Date.

 YA IT IS SAID BY THE VIKAS IS RIGHT THE DIVIDEND IS RELATING OT F.Y.10-11 HENCE THE RATE OF 16.60875% IS APPLICABLE

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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