alleryStart learning →What happened to dividend distribution tax in India from Budget 2020-21?
AIt was abolished
BIt was doubled
CIt was cut by half
DIt became a cess
Answer & Solution
Correct answer: A. It was abolished
DDT was abolished and dividend is now taxed in the investor's hands at slab rates.
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Related questions
Which limits can restrict how much a firm may distribute as dividend?Why might management avoid changing dividend policy abruptly?Which alternative to cash dividends may a firm choose when surplus cash exists?Which type of shareholder usually prefers earnings to be retained?With no NPV-positive projects and surplus cash, what should management do?Management knowing more than the market is called what?If dividends bear higher tax than gains, raising them does what to value?Per the Modigliani-Miller theorem, dividend policy has what effect on firm value?