Dividend Distribution Tax (DDT)

Tax Glossary Definition

Dividend Distribution Tax (DDT)

Dividend Distribution Tax (DDT) – A tax that was levied on dividends distributed by a company to its shareholders, paid by the company itself; abolished from FY 2020–21, with dividends now taxable in the hands of shareholders. Example: Earlier, on ₹1 lakh dividend, the company paid DDT at 15% before distribution.

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