The dividend works out to Rs 12,581.66 crore, including special dividend of Rs 7592.38 crore. The government, which is selling its entire 52.98 per cent stake in BPCL, will get Rs 6,665.76 crore plus dividend distribution tax.
The government wants to encourage companies to invest in the business and restart the investment cycle. Will that work?
A sharp fall in the market once again provides a bottom-fishing opportunity for the investors who missed participating in the recent rally, as the core fundamentals of the economy remain intact.
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"
Tune in to find out all about the Budget 2020 announcements from Moneycontrol's top experts.
Short term capital gains are taxed at 15 percent of total gains for equity holdings less than a year. Capital assets in this category include listed equity shares, ETF (exchange traded fund) and equity-oriented mutual funds
By re-introducing withholding tax on dividends, the foreign shareholders will be able to avail the benefit of caps provided in treaties and also be able to avail foreign tax credit on the amount so withheld
In the present scenario, levy of DDT is a disincentive for a foreign shareholding in terms of the return on investment as well as a disincentive for capital investment.
Any such move will not only impact tax collection, but also affect the investment cycle
The 58-year old tax regime is on the cusp of a sea change that can put more money in the hands of tax payers
Tax arbitrage siphons away 1.6-2.4 per cent of the returns in debt AIF compared to mutual funds
Finance Secretary Subhash Chandra Garg said the proposed tax on listed companies is aimed at discouraging share buybacks and encouraging investments
Companies with excess cash on their balance sheet were preferring to buy back their shares rather than paying out the same via dividends. By doing so, companies were saving on dividend distribution tax (DDT)
Lower tax rates will act as an incentive for taxpayers to comply with the direct tax regime, file returns and pay tax, and augment revenue collection
The message is loud and clear. India needs a paradigm shift in direct taxation. Will the government bite the bullet like it did for GST?
According to a report on real estate investment trusts (REITs) released by Knight Frank, the domestic environment is ripe for listing of REITs, an investment vehicle that invests in rent-yielding completed real estate projects. R
Preference shares depict features of bonds when one looks at risk-return profile.
Market volatility doesn't entail more risk for the investor in the case of arbitrage funds. In fact, arbitrage opportunities exist only when the markets are relatively unstable.
Dividends can be looked at as a source of income. However, one must be cautious while planning his money matters based on dividends declared by mutual funds.
In the Budget, the Finance Minister said that the income tax benefits benefit new SEZ units will be available to those units which commence activity before March 31, 2020.
Union Budget 2016 has made dividends received from companies in excess of Rs 10 lakh taxable at 10% rate.
"The transaction, as part of the global realignment of healthcare business to separately manage healthcare business, will enable Siemens to increase its focus on, and capital allocation to power generation, transmission and distribution, mobility, industrial automation and smart cities segments in the country," Siemens India MD and CEO said
There were several expectations from the capital market sector,such as replacement of Dividend Distribution Tax (DDT) with tax withholding in the hands of shareholders and relaxation of disallowance of expenses in relation to the earning of exempt income.
The real estate sector has found a hero of sorts in Finance Minister Arun Jaitley. Apart from incentives for affordable housing, the minister has also fulfilled a 3-year-old wish by exempting REITs from Dividend Distribution Tax reports CNBC-TV18's Kevin Lee and Aayush Ailawadi.
The government's decision to exempt real estate investment trusts (REITs) from dividend distribution tax (DDT) has eliminated the one major stumbling block that was standing in the way for the securities, says DLF CFO Ashok Tyagi.