cdt gross up
Shriti Goyal (625 Points)
27 June 2019
why do we need to gross up dividend to calculate cdt?
1 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 28 June 2019
The Finance (No.2) Bill, 2014 proposes to levy dividend distribution tax by grossing up the dividend payable for the purpose of computing liability towards dividend distribution tax.
DWith the grossing up, the effective tax rate comes be 20.47%, with the result, there will be an additional tax liability of 3.475% (based on 3% cess, in 2014). (Earlier it was 16.995% (15% tax + 10% surcharge + 3% education cess thereof)
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