 "Brokers demand cut in dividend distribution tax in upcoming Budget")
The broking community has requested the central government for a cut in the dividend distribution tax (DDT) in the upcoming Union Budget. In a submission to the Union government, the brokers' associations said the present form of adversarial taxation on the dividend of around 20 per cent results in triple taxation of corporate earnings.
The submission said the tax on dividend should be in the form of equalisation of balance difference between corporate and personal tax. The brokers' associations recommended that DDT should be withdrawn and the tax should be levied at 10 per cent at the hands of the dividend recipient.
At present, the DDT is levied on the company, plus additional dividend tax is levied on the shareholder who receives over Rs 10 lakh as dividend.
The representatives of the Association Of National Exchanges Members Of India and BSE Brokers Forum met senior finance ministry officials recently to present their Budget wish list.
The brokers' associations also requested the government to abolish additional Securities Transaction Tax (STT) of 0.125 per cent on Strike+Premium Value chargeable upon exercise of an option. The submission said there would be no revenue loss as the collection was meagre on this account. Further, the submission proposed that the STT paid by the buyer upon the exercise of the option be fixed at 0.05 per cent of the premium.
The submission said the tax on dividend should be in the form of equalisation of balance difference between corporate and personal tax. The brokers' associations recommended that DDT should be withdrawn and the tax should be levied at 10 per cent at the hands of the dividend recipient.
At present, the DDT is levied on the company, plus additional dividend tax is levied on the shareholder who receives over Rs 10 lakh as dividend.
The representatives of the Association Of National Exchanges Members Of India and BSE Brokers Forum met senior finance ministry officials recently to present their Budget wish list.
The brokers' associations also requested the government to abolish additional Securities Transaction Tax (STT) of 0.125 per cent on Strike+Premium Value chargeable upon exercise of an option. The submission said there would be no revenue loss as the collection was meagre on this account. Further, the submission proposed that the STT paid by the buyer upon the exercise of the option be fixed at 0.05 per cent of the premium.
