From the following information, determine the tax payable under section 115-O by a domestic company on the dividend distributed by it where the rate of dividend distribution tax is 20.358% : It received dividend of ₹5,00

Computation of Dividend Distribution Tax payable (Alternative 1) Particulars Amount (in ₹) A. Dividend Distributed 33,00,000 Less: Dividend received from subsidiary company (5,00,000) Less: Dividend Paid on behalf of NPS (3,00,000) Net Dividend liable for dividend distribution tax 25,00,000 B. Dividend Distribution tax payable (₹25,00,000 * 20.358%) 5,08,950 Note: It is assumed that the dividend distribution tax rate i.e. 20.358% mentioned in the question is the gross-up rate. Computation of Dividend Distribution Tax payable (Alternative 2) Particulars Amount (in ₹) A. Dividend Distributed 33,00,000 Less: Dividend received from subsidiary company (5,00,000) Less: Dividend Paid on behalf of NPS (3,00,000) Net Dividend liable for dividend distribution tax 25,00,000 B. Computation of Increased gross-up dividend distribution (₹25,00,000 * 17.304%) / (1 - 0.17304) 5,23,121 C. Total dividend distribution (Gross) (A+B) 30,23,121 D. Dividend Distribution tax payable (₹30,23,121 * 17.304%) 5,23,121 Note: The Finance Act, 2014 has inserted sub section (1B) in section 115O, as per which for the purpose of determining the tax on distributed profits payable, any amount of dividends referred to in sub-section (1) as reduced by the amount of dividend (if any) received by a domestic company from its subsidiary company or dividend paid on behalf of NPS shall be increased to such amounts as would, after reduction of tax on such increased amount (@15% + SC + EC + SHEC) be equal to the net distributed profits.