Budget 2020: DDT cut comes as a boon for firms, bane for shareholders

The move to remove DDT comes within months of the Centre lowering corporation tax from 30 per cent to 22 per cent

Finance Minister Nirmala Sitharaman on Saturday granted the stock market a long-pending wish — scrapping of dividend distribution tax (DDT). 

However, the measure came with a twist, leaving a bitter taste on investors, particularly those falling in the higher income tax slabs. 

While the Centre abolished DDT, dividends will now be taxed in the hands of recipients at their applicable rate — which can be as high as 43 per cent for the ultra-rich.

“This is another bold move which will further make India an attractive destination for investment,” said Sitharaman. She said the government has forgone estimated annual revenue of Rs 25,000