InvestorQ : Who all are expected to pay the Dividend Distribution Tax (DDT)?
Anjali Desai made post

Who all are expected to pay the Dividend Distribution Tax (DDT)?

simran Kaur answered.
3 years ago
DDT or the Dividend Distribution Tax (DDT) is the tax that the Indian government imposes on companies based on the dividend paid to the company’s investors. A company must deposit the DDT within 14 days of declaration, distribution or payment of dividend, whichever is the earlier. If the company fails to do so, it will have to pay interest at the rate of 1% of the DDT. Post Union Budget 2015-16, investors too were levied DDT of 10% on the gross dividend amount if the dividend amount exceeded Rs 10 lakh. This proposal was announced in Union Budget 2015-16 when the Finance Minister said: Dividend Distribution Tax (DDT) uniformly applies to all investors irrespective of their income slabs. This is perceived to distort the fairness and progressive nature of taxes. Persons with relatively higher income can bear a higher tax cost. Thus, the following investors were expected to pay 10% DDT on the gross dividend amount: - Individuals - Hindu Undivided Family - Firms