Dividends will be taxed in the hands of investors based on their income-tax bracket
The recent finance bill proposes to introduce a tax on dividends declared by a Business Trust at the unit holder level, creating two levels of taxation and jeopardizing any new fund raise by infrastructure and real estate companies
We see Budget 2020 as a near-term event, and longer-term/strategic asset allocations need to be guided by fundamentals researched by expert advisors.
After the Union Budget was presented on February 1, there had been some apprehensions on the growth of MF sector in the coming days. Budget 2020 has proposed to make dividend income from mutual funds taxable in the hands of the recipient instead levying on companies and MFs, and withdrawn certain exemptions to get the benefit of lower tax slabs.
The listing of the Life Insurance Corporation is a good move that will bring focus on the sector
Since dividends will now be taxable in the investor’s hands, investors in portfolio management schemes may feel the heat. What should they do?
Industry experts believe that the government's plan to tax dividend at the hands of investors could make dividend plans in equity and balanced schemes unattractive and investors may move towards growth plans.
In a special interview with Moneycontrol, KPMG 's Hitesh Gajaria explains his take on the taxpayers' charter and the new tax regime.
He also said the watchdog has sought replies from fund houses like Franklin Templeton who have marked down their investment for debt holdings of telecom company Vodafone Idea following the broader issues in the sector.
The Finance Bill 2020 contains a provision that the mutual funds need to deduct tax at source (TDS) at 10 percent if the dividend payout is more than Rs 5,000
FM Sitharaman in Budget 2020-21 presented on February 1 had said that "the dividend shall be taxed only in the hands of the recipients at their applicable rate"
Deal street is abuzz with a series of measures announced by FM Sitharaman in Budget 2020, which are expected to boost foreign investment and spur mergers and acquisitions
A lot more could have been done to bring back the confidence and flows to the Indian economy.
While the fall on the budget day has been sharp, Indian markets over the last one week have been holding on despite global markets falling on account of Coronavirus fears. The budget disappointment was thus a double whammy.
Experts see it as a non-event from a market standpoint as the requirement of the hour was much more compared to what the government delivered.
The abolition of DDT was among the most expected moves that the market was anticipating from the Budget 2020.
Given the shortfall in tax collections as well as lower non-tax revenues (on account of shortfall in disinvestment targets), markets are concerned about fiscal slippage in FY20 and FY21.
NPS for the government sector was increased from 12 percent to 14 percent last year - a similar increase is expected for the private sector as well.
Modi government’s biggest announcement of the corporate tax cut in September 2019 has hinted towards their intention of aggressively attracting new investments and job creation.
The step is taken to discourage the practice of avoiding Dividend Distribution Tax (DDT) through buyback of shares by listed companies
The tax law panel is considering reverting to the classical method of taxing dividend in the hands of the shareholders
This move may prompt mutual fund houses to promote growth option of equity mutual funds over dividend option offered by equity schemes.
All dividends in Equity and Equity Oriented Funds will now be taxed at the rate of 10 percent
This move will provide a level playing field across growth oriented funds and dividend distributing funds.
The legacy issue of royalty taxability for use v/s right to use shrink wrapped software has been a matter of litigation for a very long period, especially under the Tax Treaty scenario.