Should divident distribution tax or ddt be removed?

Read more about Budget 2018 bonanza: Govt likely to do away with dividend distribution tax on Business Standard. Finance Ministry likely ... According to Iyer, the case of removal of DDT is the need to make effective corporate tax rate in India compare favourably with competing economies. read more

Declaration of any dividend; or; Distribution of any dividend; or; Payment of any dividend, (whichever is earliest.) No deduction under any other provision of this Act shall be allowed to the company or a shareholder in respect of the amount which has been charged to dividend distribution tax. read more

This tax is known as the DDT (dividend distribution tax). DDT is levied on companies by the Indian Government according to the dividend paid to the investors. This is only applicable to those payments that are made to investors by companies in the form of dividends. DDT is payable by the company that is announcing the dividends. read more

On the contrary, there is a levy of 15.00% of the dividend declared as distribution tax(Under Income tax Act,1961). This tax is paid out of the profits/reserves of the company declaring the dividend. Additional surcharge of 12% on DDT and education cess of 3% is levied. read more