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 . 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. These investors are the ones generally who take home a lion’s share of the dividend and they do not like to share this extra topping with the government.… (Read On…)
[via Capital Mind]
Follow us @investmentheat – lists / @sectorheat
