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Dividend distribution tax

Tax queries 328 views 4 replies

My Company is a Domestic Company

Have Declared a Dividend of Rs.90,00,000/-

I Want to Deduct Tax on It.(DDT)

i Don"t  Getting any Proper Solution

Please Help Me.

Replies (4)

you first have to gross up the amount by calculation (90,00,000/85*100) i.e 1,05,88,235.

Now u need to calculate DDT @ 15% on this gross amount (1,05,88,235*15%) i.e 15,88,235

Then add surcharge @ 12% (15,88,235*12%) i.e 1,90,588.

Calculate education cess @ 3% on (15,88,235 + 1,90,588) which is 53,364.

Total amount u need to pay as DDT under section 115-O is (15,88,235+1,90,588+53,364) i.e 18,32,187

Thank You So much for Reply

Actually it is for FY 2019-2020

So Cess (3%) will Change(4%) or Not.

correct, it will be 4% now. 

 

Can we solve without grossing up? Meaning : Can we directly apply 17.472%(15% + 12%surcharge = 16.8% + 4% = 17.472%)
Also, could you explain the amendment in sec 2(22)(e) regaring the cdt leviable @ 30%


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