Budget 2020: Govt removes Dividend Distribution Tax on companies

The government on Saturday proposed to remove dividend distribution tax on companies, and henceforth the tax will be shifted to recipients at the applicable rate.

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

"This is another bold move, which will further make India an attractive destination for investment," she said, adding it would result in a revenue sacrifice of Rs 25,000 crore per annum.

Currently, companies are required to pay dividend distribution tax (DDT) on the dividend paid to its shareholders at the rate of 15 per cent plus applicable surcharge