Dividend Distribution Tax

This query is : Resolved

Sunil Moghe (Querist)
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21 July 2009 Board of Directors have recommended final dividend in the board meeting held in the month of July. Annual General Meeting will be held in the month of September. In such a case, when would Dividend Distribution Tax liability arise?

As per Sec 115O of the Income Tax Act, “The Company is required to pay the Dividend Distribution Tax within 14 days from the date of declaration or distribution or payment of any dividend whichever is earlier”.

In above statement, which is the date to be considered as Date of Declaration or Date of Distribution?

taxindiaconnect

taxindiaconnect (Expert)
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21 July 2009 The date of decalration of dividend is the date when AGM approves for the paymemt of Dividend. Thus Dividend distribution is payable within 14 days from the date of the AGM in which the dividend recommeded by board of directors is approved.