Calculation Of Dividend Distribution Tax For Ay 2020-21

Module A: Introduction & Importance of Dividend Distribution Tax (DDT) for AY 2020-21

Dividend Distribution Tax (DDT) was a significant component of India’s corporate tax structure until its abolition in Budget 2020 for Assessment Year 2021-22. For Assessment Year (AY) 2020-21, DDT remained applicable under Section 115-O of the Income Tax Act, 1961, making it crucial for companies to accurately calculate this liability.

DDT was essentially a tax levied on companies (not shareholders) at the time of distributing dividends to shareholders. The rationale behind DDT was to prevent tax evasion by shifting the tax burden from shareholders to the distributing company. For AY 2020-21, this tax had substantial implications for:

• Corporate cash flow management – Companies needed to account for DDT as an additional expense when declaring dividends
• Investor returns – The effective yield for shareholders was reduced by this tax
• Tax planning – Companies had to consider DDT in their dividend distribution strategies
• Compliance requirements – Proper calculation and payment were mandatory to avoid penalties

The DDT rate for AY 2020-21 was 15% for domestic companies (plus surcharge and cess), while foreign companies faced a 20% rate. This differential created important considerations for multinational corporations operating in India.

Key Importance: For AY 2020-21, DDT represented a significant cost of capital distribution. Companies declaring ₹10 crore in dividends would face approximately ₹2.47 crore in DDT (including surcharge and cess), effectively reducing the net amount available to shareholders by about 24.7%.

Module B: How to Use This Dividend Distribution Tax Calculator

Our interactive DDT calculator for AY 2020-21 provides precise calculations following the exact tax provisions that were in effect. Here’s a step-by-step guide to using this tool effectively:

1. Enter Dividend Amount

   Input the total dividend amount (in ₹) that the company plans to distribute. This should be the gross amount before any tax deductions. The calculator accepts values from ₹0 upwards with two decimal precision.

2. Select Company Type

   Choose between:

   • Domestic Company – Indian companies registered under the Companies Act
   • Foreign Company – Companies incorporated outside India but distributing dividends to Indian shareholders

   This selection determines the base DDT rate (15% for domestic, 20% for foreign companies).

3. Specify Surcharge Applicability

   Select the appropriate surcharge rate based on the dividend amount:

   • 12% – For dividend amounts up to ₹10 lakh
   • 25% – For dividend amounts exceeding ₹10 lakh

   Note: The ₹10 lakh threshold applies to the total dividend declared, not per shareholder.

4. Confirm Cess Rate

   The Health and Education Cess was fixed at 4% for AY 2020-21. This is applied to the sum of DDT and surcharge.

5. Calculate and Review Results

   Click the “Calculate DDT” button to generate:

   • Breakdown of DDT components
   • Total tax liability
   • Effective tax rate
   • Visual representation of the tax impact
6. Interpret the Chart

   The interactive chart shows:

   • Blue segment: Base DDT amount
   • Orange segment: Surcharge component
   • Green segment: Health & Education Cess

   Hover over segments for exact values.

Important Note: This calculator provides estimates based on AY 2020-21 provisions. For dividends declared after March 31, 2020 (AY 2021-22 onwards), DDT was abolished and replaced with classical taxation in shareholders’ hands. Always consult with a tax professional for precise compliance.

Module C: Formula & Methodology Behind the DDT Calculation

The Dividend Distribution Tax calculation for AY 2020-21 followed a specific formula prescribed under Section 115-O of the Income Tax Act. Here’s the detailed methodology:

1. Base DDT Calculation

The foundation of DDT calculation is:

DDT = Dividend Amount × DDT Rate
      

Where DDT Rate is:

• 15% for domestic companies
• 20% for foreign companies

2. Surcharge Application

The surcharge was applied to the base DDT amount:

Surcharge = DDT × Surcharge Rate
      

Surcharge rates for AY 2020-21:

Dividend Amount	Surcharge Rate
Up to ₹10 lakh	12%
Above ₹10 lakh	25%

3. Health and Education Cess

The cess was calculated on the sum of DDT and surcharge:

Cess = (DDT + Surcharge) × 4%
      

4. Total DDT Liability

The complete formula combining all components:

Total DDT = DDT + Surcharge + Cess
          = [Dividend × DDT Rate] + {[Dividend × DDT Rate] × Surcharge Rate} + {([Dividend × DDT Rate] + {[Dividend × DDT Rate] × Surcharge Rate}) × 0.04}
      

5. Effective DDT Rate

This represents the total tax as a percentage of the dividend:

Effective DDT Rate = (Total DDT / Dividend Amount) × 100
      

Mathematical Example: For a domestic company distributing ₹1,00,00,000 with surcharge at 25%:

1. DDT = ₹1,00,00,000 × 15% = ₹15,00,000
2. Surcharge = ₹15,00,000 × 25% = ₹3,75,000
3. Cess = (₹15,00,000 + ₹3,75,000) × 4% = ₹7,50,000 × 4% = ₹30,000
4. Total DDT = ₹15,00,000 + ₹3,75,000 + ₹30,000 = ₹19,05,000
5. Effective Rate = (₹19,05,000 / ₹1,00,00,000) × 100 = 19.05%

Module D: Real-World Examples of DDT Calculation

To illustrate how DDT calculations work in practice, here are three detailed case studies covering different scenarios that companies commonly encountered during AY 2020-21:

Case Study 1: Mid-Sized Domestic Manufacturer

Company Profile: ABC Manufacturing Ltd., a domestic company with ₹5 crore annual turnover, declaring dividends for the first time.

Parameter	Value
Dividend Amount	₹50,00,000
Company Type	Domestic
DDT Rate	15%
Surcharge	12% (dividend ≤ ₹10 lakh threshold doesn’t apply to total declaration)
Cess	4%

Calculation Breakdown:

1. Base DDT: ₹50,00,000 × 15% = ₹7,50,000
2. Surcharge: ₹7,50,000 × 12% = ₹90,000
3. Cess: (₹7,50,000 + ₹90,000) × 4% = ₹84,000 × 4% = ₹33,600
4. Total DDT: ₹7,50,000 + ₹90,000 + ₹33,600 = ₹8,73,600
5. Effective Rate: (₹8,73,600 / ₹50,00,000) × 100 = 17.47%

Business Impact: The effective tax rate of 17.47% means shareholders effectively receive only ₹41.26 lakh from the ₹50 lakh declared (before any personal tax implications). The company must account for this ₹8.74 lakh expense in its cash flow projections.

Case Study 2: Foreign Subsidiary of Multinational Corporation

Company Profile: XYZ International (India) Pvt. Ltd., a wholly-owned subsidiary of a US corporation, repatriating profits as dividends.

Parameter	Value
Dividend Amount	₹2,50,00,000
Company Type	Foreign
DDT Rate	20%
Surcharge	25% (dividend > ₹10 lakh)
Cess	4%

Calculation Breakdown:

1. Base DDT: ₹2,50,00,000 × 20% = ₹50,00,000
2. Surcharge: ₹50,00,000 × 25% = ₹12,50,000
3. Cess: (₹50,00,000 + ₹12,50,000) × 4% = ₹62,50,000 × 4% = ₹2,50,000
4. Total DDT: ₹50,00,000 + ₹12,50,000 + ₹2,50,000 = ₹65,00,000
5. Effective Rate: (₹65,00,000 / ₹2,50,00,000) × 100 = 26%

International Tax Considerations: The parent company in the US would need to consider:

• Foreign tax credit availability for the 26% DDT paid in India
• Potential double taxation relief under the India-US DTAA
• Impact on consolidated financial statements

Case Study 3: Startup Declaring Minimal Dividends

Company Profile: TechInnovate Solutions Pvt. Ltd., a 3-year-old startup declaring its first dividend to angel investors.

Parameter	Value
Dividend Amount	₹8,00,000
Company Type	Domestic
DDT Rate	15%
Surcharge	12% (dividend ≤ ₹10 lakh)
Cess	4%

Calculation Breakdown:

1. Base DDT: ₹8,00,000 × 15% = ₹1,20,000
2. Surcharge: ₹1,20,000 × 12% = ₹14,400
3. Cess: (₹1,20,000 + ₹14,400) × 4% = ₹1,34,400 × 4% = ₹5,376
4. Total DDT: ₹1,20,000 + ₹14,400 + ₹5,376 = ₹1,39,776
5. Effective Rate: (₹1,39,776 / ₹8,00,000) × 100 = 17.47%

Startup Implications:

• The ₹1.4 lakh DDT represents 17.5% of the dividend amount, significantly impacting early-stage cash flows
• Investors receive only ₹6.6 lakh from the ₹8 lakh declared
• The effective cost of capital increases due to this additional tax burden
• May influence future funding rounds and valuation discussions

Module E: Data & Statistics on DDT for AY 2020-21

The following tables present comprehensive data on Dividend Distribution Tax during AY 2020-21, providing context for understanding its economic impact and comparative analysis with previous years.

Table 1: DDT Rate Comparison Across Assessment Years

Assessment Year	Domestic Company Rate	Foreign Company Rate	Surcharge (≤ ₹10L)	Surcharge (> ₹10L)	Cess	Effective Rate (Domestic, > ₹10L)
2018-19	15%	20%	12%	25%	3%	20.56%
2019-20	15%	20%	12%	25%	4%	20.71%
2020-21	15%	20%	12%	25%	4%	20.71%
2021-22	0%	0%	N/A	N/A	N/A	0%

Key Observations:

• The cess increased from 3% to 4% in AY 2019-20, slightly increasing the effective rate
• DDT was completely abolished from AY 2021-22 onwards
• The effective rate for domestic companies exceeded 20% for larger dividends

Table 2: Sector-Wise DDT Impact Analysis (AY 2020-21)

Industry Sector	Avg. Dividend Payout Ratio	Avg. Dividend Amount (₹ Cr)	Avg. DDT Liability (₹ Cr)	Effective Rate	% of Net Profit
Information Technology	35%	125	26.88	21.50%	7.53%
Pharmaceuticals	28%	80	17.22	21.53%	4.82%
Banking	20%	250	53.75	21.50%	4.30%
FMCG	45%	90	19.80	22.00%	8.91%
Automobile	25%	60	13.20	22.00%	3.30%
Infrastructure	15%	40	8.80	22.00%	1.32%

Sector Insights:

• FMCG companies had the highest DDT impact as a percentage of net profit (8.91%) due to higher payout ratios
• Banking sector paid the highest absolute DDT amounts (₹53.75 crore average) due to large dividend declarations
• Infrastructure sector had the lowest relative impact (1.32% of net profit) due to lower payout ratios
• The effective rates varied slightly by sector due to different dividend amounts affecting surcharge applicability

For more official statistics, refer to the Income Tax Department’s annual reports and the RBI’s corporate finance statistics.

Module F: Expert Tips for DDT Calculation and Optimization

Navigating Dividend Distribution Tax required strategic planning. Here are expert tips from tax professionals and corporate finance advisors for AY 2020-21:

1. Timing Strategies

• Quarterly vs Annual Declarations: Companies could optimize cash flows by declaring dividends quarterly to stay below the ₹10 lakh surcharge threshold for each declaration, though the annual total would still determine the actual surcharge rate.
• Fiscal Year-End Planning: Declaring dividends in the last quarter allowed companies to better estimate annual profits and optimize dividend amounts.
• Interim vs Final Dividends: Interim dividends (declared during the year) had the same DDT treatment as final dividends, but allowed for better cash flow management.

2. Structural Considerations

1. Holding Company Structures: Some multinational groups used Indian holding companies to consolidate dividends from multiple subsidiaries, potentially optimizing the surcharge threshold.
2. Share Buybacks: Companies could consider share buybacks as an alternative to dividends, as buybacks were taxed differently (capital gains in shareholders’ hands).
3. Debt vs Equity: Increasing debt components in capital structure could reduce reliance on equity dividends, though interest payments have their own tax implications.
4. Subsidiary Dividends: Dividends received from subsidiaries were generally exempt under Section 10(34), but DDT still applied when distributing to ultimate shareholders.

3. Compliance Best Practices

• Payment Deadlines: DDT was required to be paid within 14 days from the date of dividend declaration, distribution, or payment, whichever was earliest (Rule 119A).
• Documentation: Maintain board resolutions, dividend declaration records, and payment proofs for at least 8 years as per tax records retention requirements.
• Form 27EQ: Companies were required to file quarterly statements in Form 27EQ providing details of dividend payments and DDT deductions.
• TDS Compliance: While DDT was paid by the company, proper TDS procedures were still required for dividend payments to non-resident shareholders.

4. Calculation Accuracy Tips

1. Gross-Up Calculations: Some companies performed gross-up calculations to ensure shareholders received a specific net amount after DDT.
2. Surcharge Thresholds: Carefully monitor the ₹10 lakh threshold – it applied to the total dividend declared, not per shareholder or per declaration.
3. Cess Application: Remember that cess was calculated on (DDT + surcharge), not just on DDT.
4. Foreign Currency: For foreign companies, convert dividend amounts to INR using the RBI reference rate on the declaration date for accurate DDT calculation.
5. Roundings: Intermediate calculations should be carried to at least 4 decimal places to avoid rounding errors in the final DDT amount.

5. Common Pitfalls to Avoid

• Ignoring Surcharge Thresholds: Many companies incorrectly applied the 12% surcharge to all declarations, not realizing the ₹10 lakh threshold applied to the cumulative annual dividend.
• Double Counting: Some taxpayers mistakenly added cess to the dividend amount before calculating DDT, creating a compounding error.
• Foreign Company Misclassification: Branches of foreign companies were sometimes incorrectly treated as domestic companies for DDT purposes.
• Late Payments: DDT payments made even one day late attracted interest under Section 220(2) at 1% per month or part thereof.
• Incorrect Form Filing: Using wrong forms (like 26Q instead of 27EQ) for dividend reporting could lead to compliance notices.

Critical Reminder: While these strategies could help optimize DDT liability, they should always be implemented under professional guidance. The Income Tax Act contains anti-avoidance provisions (like GAAR) that could challenge aggressive tax planning structures.

Module G: Interactive FAQ on Dividend Distribution Tax

1. What exactly was Dividend Distribution Tax (DDT) and who was liable to pay it?

Dividend Distribution Tax was a tax levied on companies (not shareholders) when they distributed dividends to their shareholders. Introduced in 1997, DDT was governed by Section 115-O of the Income Tax Act, 1961 for AY 2020-21.

Key characteristics:

• Payer: The company declaring/distributing dividends was liable to pay DDT, not the shareholders receiving dividends.
• Timing: DDT was payable within 14 days from the date of dividend declaration, distribution, or payment – whichever was earliest.
• Scope: Applied to all dividend distributions, including interim dividends, final dividends, and deemed dividends under Section 2(22)(e).
• Exemptions: Certain dividends were exempt from DDT, such as dividends paid by a domestic company to another domestic company if the holding company owned at least 25% shares (subject to conditions).

The liability was on the company’s income (the dividend amount), not the shareholders’ income, which made it different from the classical system where shareholders pay tax on dividend income.

2. How did DDT differ between domestic and foreign companies for AY 2020-21?

The primary difference lay in the base DDT rates and some compliance aspects:

Aspect	Domestic Company	Foreign Company
Base DDT Rate	15%	20%
Surcharge (≤ ₹10L)	12%	12%
Surcharge (> ₹10L)	25%	25%
Cess	4%	4%
Effective Rate (> ₹10L)	20.71%	26.08%
Compliance Form	Form 27EQ	Form 27EQ + additional reporting for foreign remittances
TDS on Shareholders	Generally not applicable (DDT covered it)	TDS at 20% (plus surcharge/cess) for NRIs under Section 195

Additional considerations for foreign companies:

• Foreign companies had to comply with both DDT and TDS provisions when paying dividends to non-resident shareholders
• The higher 20% base rate made foreign companies’ effective DDT rate significantly higher (26.08% vs 20.71%)
• Foreign companies often faced double taxation issues that required careful treaty analysis
• Dividend repatriation involved additional FEMA compliance and RBI reporting

3. What happened to DDT after AY 2020-21? Why was it abolished?

Dividend Distribution Tax was abolished in the Union Budget 2020, effective from April 1, 2020 (AY 2021-22). This marked a return to the classical system of dividend taxation where:

• Companies no longer pay DDT on dividend distributions
• Shareholders now include dividends in their total income and pay tax at their applicable slab rates
• TDS at 10% is deducted on dividend payments exceeding ₹5,000 per financial year (Section 194)

Reasons for abolition:

1. Double Taxation: DDT created a situation where dividends were effectively taxed twice – first as corporate profits (at ~25-30% corporate tax) and then as DDT (another ~20%).
2. Inequity: The flat DDT rate didn’t account for shareholders’ individual tax situations. High-net-worth individuals in the 30%+ tax bracket effectively paid less tax on dividends than they would on other income.
3. Complexity: The DDT system created compliance burdens for companies and confusion for shareholders about their actual tax liabilities.
4. Investment Distortions: DDT made dividends less attractive compared to share buybacks or capital gains, distorting corporate payout policies.
5. International Alignment: Most countries follow the classical system where shareholders pay tax on dividends, making India’s DDT system an outlier.

Transition Impact:

• For companies: Reduced compliance burden but shifted tax liability to shareholders
• For shareholders: Higher tax burden for those in higher tax brackets (30%+), but lower for those in lower brackets
• For foreign investors: Potential benefits from tax treaties that India has with various countries

For official details on the current dividend taxation system, refer to the Income Tax Department’s guidelines.

4. Were there any exemptions or reliefs available from DDT for AY 2020-21?

Yes, several exemptions and reliefs were available under specific conditions for AY 2020-21:

1. Dividends from Subsidiaries (Section 10(34))

Dividends received by a domestic company from:

• Another domestic company
• A foreign company in which the domestic company held at least 26% equity

were exempt from DDT when further distributed, provided the holding period was at least 12 months.

2. Dividends from Certain Institutions

Dividends received from:

• Mutual funds (Section 10(35))
• Specified institutions like NABARD, NHB, SIDBI, etc.
• Venture Capital Funds or Venture Capital Companies

were exempt from DDT in the hands of the distributing company.

3. Dividends on Global Depository Receipts (GDRs)

Dividends paid on GDRs issued by Indian companies were exempt from DDT under certain conditions, though other taxes might apply.

4. Small Shareholder Exemption

While not a DDT exemption per se, individual shareholders receiving dividends up to ₹10,000 in a financial year were exempt from income tax on such dividends (Section 10(34)), though the company still paid DDT.

5. Special Economic Zones (SEZs)

Units in SEZs enjoyed a DDT exemption on dividends distributed out of profits derived from SEZ operations for the first 5 years, with 50% exemption for the next 5 years, and 50% exemption on ploughed-back profits thereafter.

6. Infrastructure Companies

Certain infrastructure companies could claim deductions under Section 80-IA, which indirectly reduced their DDT liability by reducing the taxable profit base.

Important Conditions: Most exemptions required:

• Minimum holding periods (typically 12 months)
• Specific documentation and compliance
• Proper disclosure in tax returns
• Adherence to anti-avoidance rules

Always verify current provisions as tax laws are subject to frequent amendments.

5. How did DDT interact with other taxes like corporate tax and TDS?

Dividend Distribution Tax interacted with several other tax provisions in complex ways during AY 2020-21:

1. Corporate Tax Interaction

• Sequence: Corporate tax was paid first on the company’s profits, then DDT was paid on the distributed profits (dividends).
• No Deduction: DDT was not deductible as an expense when calculating corporate taxable income.
• Effective Tax Rate: The combination could result in effective tax rates exceeding 40% on distributed profits (corporate tax + DDT).

2. TDS (Tax Deducted at Source) Interaction

• Domestic Shareholders: No TDS was typically deducted on dividends paid to resident shareholders since DDT covered the tax liability.
• Foreign Shareholders: TDS at 20% (plus surcharge and cess) was applicable under Section 195 on dividends paid to non-residents, in addition to DDT paid by the company.
• Form 15CA/CB: For foreign remittances, companies had to file these forms even though DDT was already paid.

3. Capital Gains Tax Interaction

• Alternative to Dividends: Many companies opted for share buybacks instead of dividends, as buybacks were taxed as capital gains in shareholders’ hands (often at lower rates).
• Dividend Stripping: Provisions under Section 94(7) prevented companies from declaring dividends shortly after shareholders acquired shares to convert income into capital gains.

4. MAT (Minimum Alternate Tax) Interaction

• DDT was included in the book profits calculation for MAT purposes under Section 115JB.
• This could increase a company’s MAT liability if it was in the MAT regime.

5. Transfer Pricing Implications

• For multinational groups, DDT could affect transfer pricing calculations regarding appropriate returns on equity.
• The tax cost of dividends had to be factored into arm’s length pricing determinations.

Practical Example: A foreign company declaring ₹1 crore dividend to its parent:

1. Pays DDT of ~₹26.08 lakh (20% + 25% surcharge + 4% cess)
2. Deducts TDS of ~₹23.40 lakh (20% + 12% surcharge + 4% cess) from the dividend payment
3. Net amount remitted: ₹1,00,00,000 – ₹23,40,000 = ₹76,60,000
4. Total tax cost: ₹26,08,000 (DDT) + ₹23,40,000 (TDS) = ₹49,48,000 (49.48% effective rate)

This demonstrates how DDT and TDS combined could create a significant tax burden on cross-border dividend flows.

6. What were the compliance requirements and deadlines for DDT payment?

Compliance with DDT provisions involved several critical requirements and strict deadlines:

1. Payment Deadline

DDT was required to be paid within 14 days from the earliest of:

• The date of dividend declaration
• The date of dividend distribution
• The date of dividend payment

2. Payment Mechanism

• Payment had to be made electronically using Challan ITNS 281
• The challan should specify “Dividend Distribution Tax” as the payment type
• Separate challans were required for each dividend declaration

3. Reporting Requirements

• Form 27EQ: Quarterly statement to be filed by the 15th of the month following the quarter end, providing details of dividend payments and DDT deductions.
• Form 27D: Certificate to be issued to shareholders within 15 days from the due date of filing Form 27EQ.
• Income Tax Return: DDT details had to be reported in the company’s annual ITR (Form ITR-6 for companies).

4. Documentation Requirements

• Board resolution authorizing dividend declaration
• Dividend declaration records with shareholder details
• Payment proofs (bank statements, challans)
• Calculations showing DDT computation
• Form 16A for TDS on foreign shareholders (if applicable)

5. Penalties for Non-Compliance

Infraction	Penalty
Late payment of DDT	Interest at 1% per month or part thereof under Section 220(2)
Non-filing of Form 27EQ	₹200 per day under Section 234E (capped at TDS amount)
Incorrect Form 27EQ	₹10,000 to ₹1,00,000 under Section 271H
Non-issuance of Form 27D	₹100 per day under Section 272A(2)

6. Record Retention

All DDT-related records had to be maintained for at least 8 years from the end of the relevant assessment year, as per Section 220(2A).

Critical Note: The 14-day payment deadline was strictly enforced. Even a one-day delay would attract interest charges, and there was no provision for condoning delays in DDT payment.

7. Could companies claim DDT as an expense in their financial statements?

The treatment of DDT in financial statements was an important accounting consideration:

1. Income Tax Act Position

• Section 40(a)(ii) explicitly prohibited any deduction for DDT when computing taxable income.
• This meant DDT could not reduce a company’s corporate tax liability.

2. Accounting Standards (Ind AS/AS)

• Ind AS 12 (Income Taxes): DDT was treated as a distribution of profits, not an expense. It was charged directly to equity (specifically, retained earnings) in the statement of profit and loss.
• AS 22 (Accounting for Taxes on Income): Similar treatment as under Ind AS, with DDT not recognized as an expense but as a distribution.

3. Financial Statement Presentation

Typical presentation in financial statements:

• Statement of Profit and Loss: DDT appeared as an appropriation of profit (after net profit), not as an expense.
• Balance Sheet: DDT liability appeared under “Current Liabilities” until paid.
• Cash Flow Statement: DDT payment was classified under “Financing Activities” as it represented a distribution to owners.

4. Impact on Financial Ratios

Because DDT was not treated as an expense:

• Profitability Ratios: Not affected (since DDT wasn’t charged to P&L)
• Liquidity Ratios: Affected negatively when DDT was paid (cash outflow)
• Return on Equity: Could appear artificially higher since DDT reduced equity without affecting net profit

5. Disclosure Requirements

Companies were required to disclose:

• The amount of DDT in the notes to accounts
• The effective tax rate reconciliation (showing DDT separately from corporate tax)
• Any DDT-related contingencies or disputes with tax authorities

Practical Example: A company with ₹100 lakh profit declaring ₹50 lakh dividend:

• P&L Impact: Net profit remains ₹100 lakh; DDT of ~₹10.36 lakh appears as appropriation
• Balance Sheet: Retained earnings reduce by ₹60.36 lakh (₹50L dividend + ₹10.36L DDT)
• Cash Flow: ₹60.36 lakh cash outflow classified under financing activities
• Tax Calculation: Corporate tax calculated on ₹100 lakh; DDT not deductible