What is the rate of DDT?
15%
Any domestic company which is declaring/distributing dividend is required to pay DDT at the rate of 15% on the gross amount of dividend as mandated under Section 115O. Therefore the effective rate of DDT is 17.65%* on the amount of dividend.
How is DDT rate calculated?
Dividend Distribution Tax Rate Any Domestic enterprise or company which is distributing dividend needs to pay DDT @ 15% on the gross dividend amount as per Section 115O. Keeping this in mind, the effective DDT rate is @ 17.65%* on the amount of dividend. Along this trend, DDT on INR 2 lakhs will settle at INR 35,295.
What is the surcharge on DDT?
This tax is paid out of the profits/reserves of the company declaring the dividend. Additional surcharge of 12% on DDT and education cess of 4% is levied. From 2016, the investors (resident in India) earning dividends above 10 lakhs per annum will have to pay an additional tax of 10%.
Is DDT still applicable?
Amendment made by Finance Act 2020- Abolition of DDT for Indian Companies. Up to Assessment Year 2020-21, if a shareholder gets a dividend from a domestic company, it is exempt in the hands of the shareholder. However, the Finance Act 2020 has introduced abolition of DDT for the companies.
How do you gross up DDT?
Example
- Calculate Gross Dividend. Gross Dividend (100%) = Net Dividend (85%) + DDT (15%) Gross Dividend = INR 5,00,000 * 100/85 = INR 5,88,235.29.
- Calculate DDT on Gross Dividend. DDT = Gross Dividend * 15% DDT = INR 5,88,235 * 15% = INR 88,235.
Which is the tax rate for AY 2013-14?
Income Tax : 30% of taxable income.Calculate Tax Liability for AY 2013-14 Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 1 crore.
How is education cess calculated for AY 2013-14?
Education Cess : 3% of the Income Tax. Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year (i.e. born on or after 1st April 1933 but before 1st April 1953) Income Tax :Calculate Tax Liability for AY 2013-14
What are the income tax slabs for FY 2012-13?
The new and revised income tax slabs and rates applicable for the FY 2012-13 and AY 2013-14:- Where the total income does not exceed Rs. 10,000/-. Where the total income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-.