2. TILL FY20
● DDT rate was 15% plus applicable surcharge so effective
rate 20.6%
● Not subject to tax in the hands of shareholders except
certain resident taxpayer u/s 115 BBDA [rate was 10%]
3. CHANGES IN FINANCE ACT 2020
● Now Dividend income shall be taxable in the hands of
Shareholders
4. RATIONALE
● Effective rate was 45% , so India was losing its
competitive edge as compared to other countries
7. THANK YOU!
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