Section 115O
Tax on distributed profits of domestic companies (DDT)
Quick Answer
Section 115O (Tax on distributed profits of domestic companies (DDT)) has been deleted under the Direct Tax Code 2025, effective 1st April 2026.
Sec 115O
Provision Summary
Domestic companies had to pay Dividend Distribution Tax (DDT) @ 15% (plus surcharge/cess) on the dividends declared.
Deleted
Provision Summary
NA. Section abolished. Dividend taxation shifted from the company to the shareholder.
Key Changes & Highlights
- Companies no longer pay DDT. They deduct TDS under Section 194.
Related Sections
Frequently Asked Questions
What does Section 115O of the Income Tax Act 1961 deal with?
Section 115O (Tax on distributed profits of domestic companies (DDT)) Domestic companies had to pay Dividend Distribution Tax (DDT) @ 15% (plus surcharge/cess) on the dividends declared.
Is Section 115O of the ITA 1961 still applicable under DTC 2025?
Section 115O has been deleted under the Direct Tax Code 2025. NA. Section abolished. Dividend taxation shifted from the company to the shareholder.
What is the status of Section 115O under the new tax code?
Section 115O is marked as "Deleted" with status "Deleted". Impact: High - Fundamental change in corporate profit distribution.
What are the key changes to Section 115O under DTC 2025?
Companies no longer pay DDT. They deduct TDS under Section 194.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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