Dividend distribution tax

CA. sanjeet Kumar Ojha (Chartered Accountant) (272 Points)

31 July 2014  

Earlier position

if co wants to distribute RS 100 as dividend , then co deducts 16.995 as DDT and pays Balance 83.005.

But now from 1.10.2014 (Due to amendment)

Grossing up is applicable . (Institure Journal - Aug 14 :- Total tax rate after applying gross up concept will  be 20.47%).

Please solve the above example by applying the concent of gross up.

How to gross up and upon which figure the 20.47 % will be applied.


Thanks in advance.