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What is Dividend Distribution Tax (DDT)

Dividend Distribution Tax (DDT)

About Dividend Distribution Tax (DDT)

What is Dividend Distribution Tax (DDT)

Dividend Distribution Tax (DDT) is a tax levied on dividends distributed by companies out of their profits among their shareholders.
 
The Dividend Distribution Tax is taxable at source and is deducted at the time of the distribution. According to the law, DDT is levied at the hands of the firm, and the shareholder. An exception is that when a shareholder receives more than Rs 10 lakh in dividend, they have to pay an additional tax.
 
Under the Income Tax Act, any domestic firm which is distributing dividends has to pay DDT at the rate of 15 per cent of the gross amount.
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Latest Updates on Dividend Distribution Tax (DDT)

Dividend payouts by India Inc nearly double to Rs 44,810 cr in Q1 CY20

The change in the tax structure has prompted companies to advance their payouts

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Updated On : 05 Apr 2020 | 6:44 PM IST

Budget impact: Shares with DVRs underperform after DDT removal

The median loss for such securities after the Budget is 4.5 per cent, compared to a 2.1 per cent gain in the benchmark S&P BSE Sensex

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Updated On : 13 Feb 2020 | 10:35 PM IST

Effective tax rate to rise for life insurance companies with DDT removal

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

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Updated On : 05 Feb 2020 | 1:53 AM IST
Updated On : 05 Feb 2020 | 1:19 AM IST

New taxation rules to hit dividends received from foreign subsidiaries

Rewriting of norms may result in double taxation, say experts

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Updated On : 04 Feb 2020 | 11:14 PM IST

No longer taxing: DDT removal a step in right direction, says Sebi chief

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

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Updated On : 04 Feb 2020 | 11:50 PM IST

DDT abolished: Nearly 60% high dividend yielding shares end in the red

Foreign institutional investors (FIIs) sold shares worth over Rs 1,200 crore, provisional data provided to the stock exchanges shows

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Updated On : 04 Feb 2020 | 12:37 AM IST

To boost domestic investment, Sitharaman's Budget focuses on foreign firms

A fiscally-strapped finance ministry was not expected to hand out any major sectoral sops. It has offered, instead, room for larger sector-agnostic investments, in spite of the protectionist character

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Updated On : 03 Feb 2020 | 9:57 PM IST

Budget 2020: Here are a few hits and misses for overseas investors

There were no big-bang measures for foreign portfolio investors (FPIs) in the Budget

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Updated On : 02 Feb 2020 | 11:24 PM IST

Naveen Patnaik critiques Budget 2020, frets over shrinking central tax pool

Counting the positives, he welcomed initiatives such as Krishi Rail and Krishi Udan

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Updated On : 01 Feb 2020 | 8:12 PM IST

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

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Updated On : 01 Feb 2020 | 11:30 PM IST

Budget 2020: Govt removes Dividend Distribution Tax on companies

Finance Minister Nirmala Sitharaman while unveiling the Union Budget said the proposal would make India more attractive market for investment

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Updated On : 01 Feb 2020 | 3:24 PM IST

Shares bought on January 31 cannot be sold on the Budget day. Here's why

NSE, BSE to conduct a special trading session on February 1; settlement of trades on February 4

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Updated On : 01 Feb 2020 | 8:33 AM IST