DIVIDEND TAX COMPUTATION

Dear Sir,

Its Dividend Distribution Tax - The above rate is applicable on the amount of dividend distributed and not on the amount of after tax profit.

Say out of above 10 lakhs, ur company decides to pay rs. 2 lakhs as dividend then dividend distribution tax shall be on Rs. 2 lakhs computed as follows -

2 lakhs X 16.995/100

ya , Amir is right , dividend distribution tax should  be paid on appropriation of profits amount and not on profit  amount , the DDT @ 16.995% is applicable on appropriation of dividend amount  that u r declaring ,,

Rate of surcharge has changed. So DDT is 16.60875%

pay dividend distribution tax only on dividend amount

Hey guys, Is Additional surcharge {under section 2(11) and (12) of F.A. 2010} is applicable for Tax on distributed profit (u/s. 115O)? In my humble opinion it applies to Income Tax amount and not any rate of tax. And so rate shall be 15+(15)7.5% = 16.125& Plz correct me if m wrong. Regards Juzer