Budget 2020: Abolition of DDT may broaden capital market investor base

The abolition of dividend distribution tax (DDT) is expected to broaden the capital market investor base.
 
It will improve dividend payout by companies. Hence, hoped a source in the government, “encourage lower-income group people (annual income up to Rs 5 lakh) to invest in the capital market, as there is no tax liability on dividend for them, as against over 20 per cent paid by them under the previous regime”.
 
Currently, three per cent of the country’s population invests in this market.
 
However, on Saturday, the stock markets did not react positively, contrary to the government’s expectation.