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Govt mulls more steps to boost market sentiment, may scrap DDT, rejig LTCG

Officials believe DDT is acting as a hindrance to the inflow of foreign investment in the country; govt has been discussing the matter with regulators

tax, dividend

Shrimi Choudhary New Delhi
The finance ministry and regulators are reviewing the possibility of scrapping the dividend distribution tax (DDT) in a bid to regain investor confidence in the equity markets, said sources in the government. It is also considering rationalisation of the long-term capital gains (LTCG) taxation structure by classifying three asset classes against six at present.

The government and regulators have had a few rounds of discussion over the taxation system for share markets in the past few days, said official sources, adding that the government feels the DDT might be acting as a hindrance to the inflows of foreign investment in

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First Published: Oct 29 2019 | 9:59 PM IST

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