Individual Tax - DDT Mutual Fund (Non-Equity) Dividends

[Asked by Guest]

Per new Govt act, from Oc 1, 2014, DDT needs to paid @ 28.33%. More details here. Pls check under non-equity funds (equity fund dividends are tax exempt). Pls look at two tables in Pg# 1 & Pg# 3.

Two questions.

(1) My Mutual Fund company did not do TDS for DDT. It does not show up in Form 26 AS. Which means I need to pay DDT while doing the filing. Question: Where do I declare it? It is taxed @ 28.33% (not 30.33% which is for Short term capital gain tax). For me, the savings are close to ₹ 2k.

(2) Second question: This law is effective Oct 1, 2014. For FY 2014-15, does that mean there are two tax regimes for DDT. One at 22.33% (previous tax rate) and another at 28.33 (existing tax rate)? If yes, again, how do I declare it..

If (2) is not answered it's ok. Requesting answer for (1) atleast.

Thanks

AI Summary

Dividend Distribution Tax on non-equity mutual fund dividends requires declaration in return when the fund did not withhold tax.
Dividend distribution tax on non-equity mutual fund dividends effective October 1, 2014 raises a reporting issue where the mutual fund did not deduct tax and dividends are absent from Form 26AS. The core query is how an individual investor should declare and discharge the Dividend Distribution Tax liability in the income-tax return when no TDS/withholding has been shown. A secondary question asks whether the amendment creates differing DDT rates within the same fiscal year and how any such transitional rates should be reflected in filings.