New Delhi: The government is considering changes in the budget statement due in February 2020, to its dividend distribution tax, according to people with knowledge of the matter, in a bid to goad companies to boost spending and revive foreign fund inflows.
According to a Bloomberg report, the budget statement due February may include a proposal to tax dividends once they are paid to shareholders, rather than the current system where the company pays the levy, the sources said, asking not to be identified as the deliberations are private.
Currently, Indian companies need to pay the tax office 15 per cent of dividends declared, which rises past 20 per cent once surcharges are added. Investors, who are also taxed on their earnings, have protested these multiple levies.
