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Mar 11, 2020
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Govt may halve dividend income tax rate for big local investors
The government may consider effectively halving the tax rate on dividend income for individuals in the highest tax bracket, two people familiar with the development said, likely boosting stocks that are facing a rout globally.
The government is looking to tweak the current regulations to bring down the tax on dividends to about 20% from up to 43% for Indian individual investors. The government may offer the concession by offering a flat 20% tax on dividend income.
After a change in the budget, dividend income is now taxable up to 43% in the hands of the recipient from April this year.
Foreign companies, on the other hand, would have to pay anywhere around 5% to 15% tax on dividends depending on the tax treaty that India has with the country from where the investment is routed.
Source -
https://economictimes.indiatimes.com
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