Dividend Distribution Tax Rate from 1-October-2009

 It is 15 % tax + surcharge + cess

  15 % tax + surcharge + cess

15 % tax + surcharge + cess

please tell me what is the Rate of Dividend Tax and Surcharge thereon and

kindly clarify that is there any Education Cell and Higher Education Cess on that

Dear Bala Subramanyam,

Dividend distribution tax is levied on the company at the time of paying interim dividend or final dividend.The tax rate is 15% on the amount of dividend distributed.10% surcharge on the tax and 3% education cess (i.e 2% primary education cess and 1% secondary and higher educaiton cess) on tax + surcharge.The effective rate of tax turns out to be 16.995%.

I agree with Fatema.