INTERVIEW QUESTIONS TAX DIVIDEND DISTRIBUTION TAX DETAILS

Question: How is Dividend Distribution Tax Calculated?

Answer: As per the Section 115-O, there are some rules while calculating the DDT. They are,

Dividends that are once taxed, cannot be taxed 2nd time.

The profits made by domestic company won’t be included in the profit while computing the DDT.

If the subsidiary is a foreign company then the Dividend Distribution Tax will be paid by the parent company of the income from the subsidiary.

The responsibility for paying the Dividend Distribution Tax lies with the company & the principal officer.

The Dividend Distribution Tax has to be paid to the govt within 14 days from the declaration, distribution or payment of dividends.

As per the Section 115-O, there are some rules while calculating the DDT. They are,

Dividends that are once taxed, cannot be taxed 2nd time.

The profits made by domestic company won’t be included in the profit while computing the DDT.

If the subsidiary is a foreign company then the Dividend Distribution Tax will be paid by the parent company of the income from the subsidiary.

The responsibility for paying the Dividend Distribution Tax lies with the company & the principal officer.

The Dividend Distribution Tax has to be paid to the govt within 14 days from the declaration, distribution or payment of dividends. Source: CoolInterview.com

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