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

The dividends paid by private sector companies during the first three months of 2020 was nearly double that of last year. India Inc paid a cumulative dividend of record Rs 44,810 crore, up nearly 95 per cent over the same period of last year.

Starting April, companies won’t have to pay the dividend distribution tax (DDT) of 20.56 per cent. However, those receiving dividends will have to pay tax on it based on their personal income tax slab. As a result, promoters might end up paying as high as 43 per cent tax on the dividends that they receive.