Dividend Distribution Tax Rate

Hii Frnds

Can you please state the DDT Rate for Final dividend declared by Company in May 2010 in respect of FY 2009-10.

 

Is it 16.995 % (15% + 10% surcharge + 3% Education Cess)

or   16.609 % (15% + 7.5 % surcharge + 3% Education Cess)

 

As per the finance Act 2010, the surcharge is 7.5%. will that be applicable to DDT also ??

 

Please suggest

Replies (2)

surcharge @ 7.5% will be applicable for any dividend payment after 1st april..........

as far as final dividend of F.Y. 2009-2010 is concerned, surcharge is 10% (no doubt)........

Thanks for the reply,

Even i am of the view same view, but I have come across the opinion that that since the dividend is declared in FY 2010-11, Surchage rate for DDT will be 7.5%. It doesn't matter whether the dividend is declared for the previous years.

Also as per the annual results 2010 declared by TCS, the surcharge rate they used on final dividend is 7.5 %, i.e. dividend rate of 16.609 %

 

I am confused. Please suggest, since we have to make the actual payment very soon

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