In budget 2010, surcharge on domestic companies has been reduced to 7.5% from 10%.
A company has proposed dividend in its audited balance sheet as on 31.3.2010. On 01.06.2010, its board of directors passed the resolution for declaration of dividend.
My query is for calculating dividend distribution tax, surcharge rate shall be 10% or 7.5%? Which rate of surcharge will be applicable as dividend was proposed in the audited accounts for FY 2009-10 but it is declared in FY 2010-11.
According to me, surcharge @ 7.5% should be charged.
CAclubindia
