If a company want to declare dividend and management has decided that distributable surplus is 8 crore (inclusive DDT), therefore now the question rise for calculation of dividend tax. I have done this calculation Dividend to shareholder - 6,64,04,000 Dividend Tax - 1,35,96,000 Total distributable surplus - 8,00,00,000 Dividend TAx @ 16.995% if you grossedup the dividend to shareholder it will be 8 crore.