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Govt may consider scrapping dividend distribution tax in Budget
February, 05th 2015

The government is considering scrapping a dividend distribution tax in its annual budget this month, as part of efforts to boost investor sentiment, Bloomberg Television reported on Thursday, citing unnamed sources.

Union Finance Minister Arun Jaitley. Union Finance Minister Arun Jaitley.Indian companies are liable for additional tax on any amount distributed or paid out to shareholders. Before the introduction of the dividend distribution tax, shareholders were liable for taxes on the dividends they received.

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