DDT Tax rate on dividend declared in F.Y. 10-11 (Sec.115-O)

Vishal Jain (Tax) (25 Points)

13 September 2010  

Dividend Distribution Tax (DDT) rate for two assessment years is –  

                                                            A.Y. 2010-11                 A.Y. 2011-12

                        Basic Rate                                15                                 15                    

                        Surcharge                                 10*                               7.5*

                        Total Cess                                 3                                  3

 * Suppose Income of the company exceeds Rs. 1 crore

If Annual General Meeting is held on let say 20th Sep., 2010 and declared dividend of let say 5 Cr.

 Whether we need to pay DDT applicable for A.Y. 2010-11 or A.Y. 2011-12.

According to me it should be 15% + 7.5% + 3% but do any body have any precedent or supporting case law.