The correct answer is: Both A and B.
Dividend Distribution Tax (DDT) is a tax levied on the distribution of dividends by companies to their shareholders. It is a withholding tax, which means that the company is responsible for deducting the tax from the dividend and paying it to the government on behalf of the shareholder.
The rate of DDT is 15% for equity shares and 20% for preference shares. DDT is not applicable on dividends paid to foreign shareholders.
Equity shares are shares that represent ownership in a company. Preference shares are shares that have a preference over equity shares in terms of dividend payments and repayment of capital in the event of liquidation.
Debentures are loans that companies raise from investors. Debentures are not shares and do not entitle the holder to any ownership in the company.
Therefore, DDT is paid on both equity shares and preference shares.