Hi, i have a Ltd, company. I got profit after tax 10,00,000/- I have to pay dividend tax, How i will compute the tax U/s. 115 O
10,00,000x16.995/100 or 10,00,000x16.995/116.995
Pls give me detailed explanation for computation.
5 Replies
Amir
(Learner)
(4016 Points)
Replied 13 July 2010
Dear Sir,
Its Dividend Distribution Tax - The above rate is applicable on the amount of dividend distributed and not on the amount of after tax profit.
Say out of above 10 lakhs, ur company decides to pay rs. 2 lakhs as dividend then dividend distribution tax shall be on Rs. 2 lakhs computed as follows -
2 lakhs X 16.995/100
harish .k
(STUDING)
(306 Points)
Replied 13 July 2010
ya , Amir is right , dividend distribution tax should be paid on appropriation of profits amount and not on profit amount , the DDT @ 16.995% is applicable on appropriation of dividend amount that u r declaring ,,
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 13 July 2010
Rate of surcharge has changed. So DDT is 16.60875%
hyponkshe
(chartered accountants)
(73 Points)
Replied 13 July 2010
pay dividend distribution tax only on dividend amount
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 13 July 2010
Hey guys,
Is Additional surcharge {under section 2(11) and (12) of F.A. 2010} is applicable for Tax on distributed profit (u/s. 115O)? In my humble opinion it applies to Income Tax amount and not any rate of tax.
And so rate shall be 15+(15)7.5% = 16.125&
Plz correct me if m wrong.
Regards
Juzer
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