Dividend distribution tax to be levied on individuals instead of firms: FM

FM also proposed deferment of tax payment by employees on employee stock ownership plan from startups by five years

Finance Minister Nirmala Sitharaman on Saturday said dividend distribution tax has been shifted to individuals instead of companies. In her second Budget presentation, the Finance Minister said concessional tax rate of 15 per cent has been extended to power generation companies.

The government plans 100 per cent tax concession to sovereign wealth funds on investment in infra projects, she added. Sitharaman further said concessional withholding rate of 5 per cent on interest payment to non-residents has been extended up to June 30, 2022.

The Finance Minister also proposed deferment of tax payment by employees on employee stock ownership plan (ESOPs) from startups by five years.