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This mail is to inform you about a change in Dividend Distribution Tax (DDT). This change is applicable only on dividends declared in your debt and liquid mutual fund holdings.
Currently DDT is applied on net dividend payout. As per Finance (no. 2) Act 2014, the DDT rates will apply on gross dividend payout effective October 1st 2014. Though the rate remains the same, the net dividend payout from debt and liquid mutual funds would reduce going forward.
Below is an illustration on dividend payment considering the change in DDT rate:
Prior to Budget 2014-15
|
As per Finance (no. 2) Act 2014 (effective date Oct 1st 2014)
| |||
Individuals
|
Corporates
|
Individuals
|
Corporates
| |
Dividend distribution tax (DDT) rate %
|
28.3250%
|
33.9900%
|
28.3250%
|
33.9900%
|
Dividend rate %
|
20.00%
|
20.00%
|
20.00%
|
20.00%
|
Dividend rate (Rs.) @ face value of Rs.10
|
2.00
|
2.00
|
2.00
|
2.00
|
DDT (Rs.)
|
0.4414
|
0.5073
|
0.5665
|
0.6798
|
Net dividend paid (Rs.)
|
1.5585
|
1.4926
|
1.4335
|
1.3202
|
Effective DDT rate
|
22.0728%
|
25.3675%
|
28.3250%
|
33.9900%
|
�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
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