Ever since the Finance Ministry announced Taxation of Dividends Received (Above INR 10 lakh) in the Budget 2016, companies have been lining up furiously to reward their share-holders before April 01. This is the date from which any Individual or HUF receiving dividends greater than INR 10 lakh, would have to pay 10% Dividend Distribution Tax. Read our short post on the Introduction of Dividend Distribution Tax . Related Links: Update: EPF Will No Longer Be Taxed, Jaitley Withdraws Budget Proposal Budget 2016: First Thoughts Of Deepak Shenoy Budget 2016: The Indirect Tax Show Budget 2016: Meets Deficit Targets Through Higher Taxes and Lower Expense Growth As a result, there has been a slew of corporate board meetings as companies scramble to figure out how much they should distribute to share-holders, while keeping in mind, the deadline of March 31. Keep in mind, this is mainly for the benefit of Promoters and Big Individuals, likely to receive more than INR 10 lakh on account of their ownership positions, who would want to take the cash now rather than after April.… (Read On…)
[via Capital Mind]
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