09 August 2010
Dear Sir, My client is a pvt. ltd. co having less than one crore income & wants to declare dividend ? what is the rate of dividend distributed tax to be paid by this company. I feel it is 15% for the A.Y. 10-11 but whether Surcharge & Edn. Cess applicable ? if yes what is rate ? please give seperately as well as cumulative rate of tax. Thanks
09 August 2010
Dividend distributed by an Indian Company is exempt from income-tax in the hands of many shareholders. The Indian Company is liable to pay Dividend Distribution Tax (DDT) @ 16.609 percent (i.e. inclusive of surcharge and education cess) on such dividends
10 August 2010
Please clarify regarding the DDT if the dividend declared & paid in the Financial year 10-11 for the year ended 31.03.2010. whether surcharge is 7.5% or 10%
CAclubindia
