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Thursday, July 02, 2009

Rationalize dividend distribution tax

To ensure full single taxation of receiver

The Economic Survey for 2008-09 was presented by Finance Minister Pranab Mukherjee in Parliament today, 2 July 2009.

The FM prescribed rationalization of dividend distribution tax (DDT) to ensure full single taxation of receiver.

Currently,dividend declared by the Indian companies is exempt from tax in the hands of shareholders but the declaring company has to pay corporate dividend tax at approximately 17% on the dividend so declared to the shareholders.

The Economic Survey, which is tabled by the Finance Minister before the presentation of the Budget, provides the government's assessment of the economy, outlines the problems facing the country and suggests measures for dealing with them.

The Union Budget for 2009-10 will be presented by the Finance Minister Pranab Mukherjee in the Parliament on Monday, 6 July 2009.

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