Dividend Tax

Bombay High Court says dividend tax paid by Indian firms to foreign parents must be capped at treaty rates, a ruling that could open large refund claims for multinationals

Firms will examine qualitative factors before extending treaty benefits

Last year, the category saw outflows of over Rs 24,000 crore, data from the Association of Mutual Funds in India (Amfi) shows

Payout has fallen for most firms except TCS in FY20 as companies looked at conserving cash

Only after business has stabilised and there is visibility ahead should companies look at paying their shareholders

NCLAT relief for Flipkart, FM on credit scores, flurry of dividend payouts by companies and more

Rewriting of norms may result in double taxation, say experts

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

However, on Saturday, the stock markets did not react positively, contrary to the government's expectation

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

Capital market players are hoping for a slew of changes that will make life easier for them in terms of taxation. Here are a few expectations

The budget statement due February may include a proposal to tax dividends once they are paid to shareholders, rather than the current system where the company pays the levy

The abolition of the DDT is one of the long-pending demands of market players as it leads to double taxation

Suggests rejig of 20% and 30% slabs of personal income tax

A promoter can announce a buyback, extinguish some shares and cash in

Companies to pay shareholders via buybacks, which attract zero tax

Over a dozen cos announce dividends within days of the Budget to avoid tax for its shareholders

Additional levy to eat into Rs 6,000-crore income of top promoters