21: Is there a case for dividend distribution tax
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English - October 31, 2019 09:24 - 7 minutes - 7.03 MBNews Commentary News news podcasts trending podcasts daily dose daily news trendy podcast current affairs news bites best podcasts listens news Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
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According to reports, the government is planning to scrap the dividend distribution tax paid by companies. One argument is that taxing dividends amounts to double taxation since the profits of the company, from which dividends are distributed, are already subjected to tax. In addition, we need more people to buy shares to expand our capital markets, and such disincentives can place hurdles. But in a country like India where there is wide inequality in the distribution of wealth, such a move might be seen as favouring capitalists, or the rich, at the cost of the middle class, which pays high income tax.