Dividend distribution tax

This query is : Resolved

Yajuvendra Rawat (Querist)
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26 September 2011 Dear Sirs and Friends,

How will a shareholder assessee come to know whether the payer company has deducted Dividend Distribution Tax on the Dividend provided. If DDT is not deducted by the payer company the same is not exempt in the hands of the payee, but how will he come to know about the non deduction of DDT by the payer company.

Please help me to clarify my doubt.

Regards,

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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14 October 2011 It is the liability of the company to pay Dividend distribution tax and the shareholder is is in no manner concerned with it. Dividend distribution tax is not deducted from the dividend but the tax has to be paid by the company as soon as it is declared. Once the shareholder receives the dividend it is exempted in his hands