Experts attribute the higher payout to the change in dividend law and cut in corporate income tax.
The change in the tax structure has prompted companies to advance their payouts
At present, all FPIs under category-II are subject to transfer provisions which impacts close to 20 per cent of FPIs
If an MNC wants to invest in India, the company structure seems attractive. For Indian promoters, LLPs still appear to be a better option
High-income resident Indians will end up with a higher tax outgo
Dividend income holds a significant share in the profit before tax of a life insurance company, of 24-37 per cent in 2018-19, it is estimated
The new DDT rules make recipients add dividends to their total income and pay tax at the marginal rate
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Removal of DDT will result in tax savings of 20 per cent for companies, promoters and other wealthy shareholders may be taxed as high as 43 per cent on the dividends they receive
Rewriting of norms may result in double taxation, say experts
It went on to state that necessary clarification, if required, shall be proposed in the relevant provision of the law
Currently, mutual funds deduct the DDT and then hand over dividend to the unit holders
Foreign institutional investors (FIIs) sold shares worth over Rs 1,200 crore, provisional data provided to the stock exchanges shows
The move to remove DDT comes within months of the Centre lowering corporation tax from 30 per cent to 22 per cent
FM also proposed deferment of tax payment by employees on employee stock ownership plan from startups by five years
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Tax may be imposed on shareholders getting dividends
The abolition of the DDT is one of the long-pending demands of market players as it leads to double taxation