Companies likely to change dividend tax policy after Budget changes

Indian companies may well change the way they return capital to shareholders after alternations in dividend tax policy.
 
An analysis of S&P BSE 500 companies suggests that promoters of Indian private-sector companies in particular could end up paying at least 20 per cent more as additional tax on the same dividend income.
 
They are likely to explore alternative ways, including buybacks, to pay back shareholders, according to experts.
 
The Union Budget on Saturday said dividends would be taxed in the hands of shareholders.
 
This means that promoters who are taxed at the highest rate could end