If Dividend is declared by the Company on 29th Sept, 2014, then the tax which has to be paid on the Declared Dividend (before 14 days) does it have to be paid as per the old calculation before the amendment or as per the new amendment which is effective from 1st oct 2014. Is the new amendment applicable to the tax declared before 1st october, 2014 with respect to the payment of tax?
Dear Aakriti,
If the dividend is Declared on 29/9, the old DDT rate should apply, since the taxable event is before 01/10, even though the actual tax ayment is being made post october. It is like you paying income tax at the rates in force for AY 2014-15 (FY 2013-14), even though the tax payment is being made after the close of the financial year 2014.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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