Dividend distribution tax is the tax imposed by the Indian Government on Indian companies according to the dividend paid to a company's investors. At present, the dividend distribution tax is proposed to be removed by government in financial annual statement 2020 according to the Union Budget of India. The company has to deposit DDT within 14 days of declaration, distribution or payment of dividend whichever is the earlier. In case of non-payment within 14 days, the company shall have to pay interest at the rate of 1% of the DDT.