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Dividend distribution tax

Harish Naidu (Job) (193 Points)

29 August 2011

Hi, Please let me know the rate of Dividend Distribution Tax for F.Y. 2011-12. Is it same as previous year @ 15% plus surcharge or its changed to 18% plus surcharge.

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10 Replies

devang (CA FINAL article ) (181 Points)
Replied 29 August 2011

same at 15 @ plus surcharge

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CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114225 Points)
Replied 29 August 2011

For FY 2011-12 i.e AY 2012-13

DDT Rate: 15%

Surcharges: 5%

Cess: 3%

i.e 16.22%

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C.A. Parin Poojara (Chartered Accountant) (90 Points)
Replied 29 August 2011

As per section 115O "in addition to the income-tax chargeable in respect of the total income of a domestic company for any assessment year, any amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise) on or after the 1st day of June, 1997, whether out of current or accumulated profits shall be charged to additional income-tax (hereafter referred to as tax on distributed profits) at the rateof fifteen per cent"

srinivass (CA Final) (2466 Points)
Replied 08 September 2011

Thanks fro sharing information what about ddt for AY 2011-12

Sunita (Student) (21 Points)
Replied 08 August 2012

The rate of Dividend distribution tax is given in the IPCC Accounts study material to be 15% (excluding surcharge and cess) but in Illustration 4 of Preparation of Financial statements chapter, it has been calculated at 10%. Its literally written in the profit and Loss statement " Dividend Distribution Tax (3,294*0.10)" How come?? Please explain. I need help. And Quick.

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 01 October 2012

For the financial year 2011-12 Dividend Distribution Tax shall be paid as under:

Basic Rate: 15%

Surcharge: 5%

Cess: 2+1=3%

Total Rate= 16.2225%

Ajay kumar reddy (Article trainee) (28 Points)
Replied 20 December 2012

Dear all,

If dividend for f.y.2007-08 is declared on 30/10/2008 i.e. after filing of return for that financial year.Now what will be the assessment year for DDT paid on that dividend???2008-09 or 2009-10???

HARPREET SINGH (Chartered Accountant) (79 Points)
Replied 20 December 2012

Hi Ajay...It would be FY 2008-2009. Date of declaration is important.

CA Rajnik Galani (prctice) (154 Points)
Replied 20 December 2012

Dividend Distribution Tax calculate in A.Y.-2011-12 as per below rate

TAX RATE- 15%

SURCHARE -5%

CESS- 3%

That's 16.22%

Ajay kumar reddy (Article trainee) (28 Points)
Replied 26 December 2012

A company in its return for the A.y.2008-09 has wrongly entered the amount of dividend distribution tax paid as the amount of dividend declared and hence no tax was shown to be paid on the dividend declared.

Facts of the case:

for f.y.2006-07 DDT paid on the amount of div. declared was Rs.233327/- paid on 5/10/2007.

for f.y.2007-08 DDT paid on interim divdend declared was Rs.77775/- paid on 5/10/2007

In the return for A.y.2008-09 the dividend declared amount was shown as Rs.311103/-(233327+77775).

Now the company has received a demand notice of Rs.52872 which is equal to the ddt if calculated on Rs.311103 as per return.In this context,how the company has to proceed with the department?? kindly suggest..Thank u