FinMin may restore dividend deductions for 22% corporate tax regime

Under the existing tax regime, domestic companies are taxed at three different rates depending on their chosen structure

The Finance Ministry (FinMin) is likely to amend the Income Tax Bill 2025 to restore the deductions for inter-corporate dividends for companies opting for the 22 per cent concessional tax regime. The move is linked to stakeholders raising concerns about the omission leading to double taxation.

 

"This appears to be an inadvertent omission in the new Income Tax Bill. We will address and rectify it as taxing the same income twice goes against established principles of fair taxation,” a finance ministry official said on the condition of anonymity.

 

An email query sent to the finance ministry remained unanswered till the