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

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.