Dividend Distribution Tax (DDT) for Financial Year 2015-16
Dividends distributed
by an Indian Company are exempt from income tax in the hands of all
shareholders. DDT shall be computed on the amount determined after grossing up
dividend paid by the rate of tax (excluding Surcharge and Cess) on such
dividend.
Grossing up needs to
be done only of the Basic Rate and not of the Effective Rate. The rates of DDT are
as below:
DDT Rates for Companies for Financial Year 2015-16
|
Basic Rate
|
Effective Rate*
|
|
17.647
|
20.358
|
*including Surcharge
of 12% & Education Cess
DDT Rates for Mutual
Fund” (MF) for payments to –
|
Particulars
|
Basic Rate
|
Effective Rate*
|
|
(1)
Distribution by MF under an Infrastructure Debt fund scheme to a non-resident
|
5.263
|
6.071
|
|
(2) To
an individual or HUF excluding (1) above
|
33.33
|
38.449
|
|
(3) To any other
Person excluding (1) a (2) above
|
42.85
|
49.432
|
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