Hi, i have a Ltd, company. I got profit after tax 10,00,000/- I have to pay dividend tax, How i will compute the tax U/s. 115 O
10,00,000x16.995/100 or 10,00,000x16.995/116.995
Pls give me detailed explanation for computation.
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DIVIDEND TAX COMPUTATION
Replies (5)
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
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