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Dividend distribution tax

1.Can general reserve be used to set off the DDT in case of inadequate profits? Or will it be continued to be shown as a loss ? 2. Is DDT applicable in new tax regime?


Raviteja Kusumanchi

Raviteja Kusumanchi

CA Inter

24K+

26-Feb-20

190

Answers (4)

Dividend distribution tax has to be appropriated out of balance of profit and loss account or free reserves. DDT is not an expenditure. After the amendment by Finance Act 2020, DDT will not be applicable.


Suraj Lakhotia

Suraj Lakhotia

Admin

26-Feb-20

Okay sir


Thread Starter

Raviteja Kusumanchi

Raviteja Kusumanchi

CA Inter

24K+

26-Feb-20

For inter May 2020 what cess rate will be applicable 3% or 4% ?? Because in ICAI June edition module it is 3% .


Chandan Subudhi

Chandan Subudhi

CA Inter

12K+

26-Feb-20

4%. For tax rates, you can refer to the updated income tax notes in Notes section of App.


Suraj Lakhotia

Suraj Lakhotia

Admin

26-Feb-20

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