Clarification - Assessment year

[Guest]

Dividend Distribution Tax Challan- A/Year? Dear Sir, Dividend provision made in balance sheet for the year ending 31-03-2008, AGM held on 30-09-08, Now which assessment year should be shown in Challan no. 280, will it be A/Y 2008-09 as the dividend pertained to A/Y 2008-09 or will it be A/Y 2009-10. Best Regads

[DEV KUMAR KOTHARI]

Dividend is distributed during FY 2008-09, liability to desposit DDTax arise in FY 2008-09, therefore, A.Y. should be mentioned as 2009-10.

[Guest]

What if I have mentioned A/Y wrongly as A/Y 2008-09. Will it be treated as technical lapse? How to correct the situation. Best Regards

[DEV KUMAR KOTHARI]

Just write to the A.O. giving details of dividend declared, due date, date and details of payment and request him to take care of tax paid and its accounting at his end.

AI Summary

Dividend Distribution Tax: liability arises in the financial year of distribution, so use the subsequent assessment year on challan. If a dividend provision pertains to a prior balance-sheet year but the dividend is declared or paid in the subsequent financial year, the liability to deposit Dividend Distribution Tax arises in the financial year of distribution and the challan should show the corresponding assessment year. If the wrong assessment year was entered on the challan, write to the Assessing Officer with full details of the declaration, payment and tax paid and request adjustment.