Budget 2015: Govt may consider scrapping dividend distribution tax

New Delhi: The government is considering scrapping a dividend distribution tax in its annual budget this month, as part of efforts to boost investor sentiment, Bloomberg Television reported on Thursday, citing unnamed sources. [caption id=“attachment_2079187” align=“alignleft” width=“380”] Union Finance Minister Arun Jaitley.[/caption] Indian companies are liable for additional tax on any amount distributed or paid out to shareholders. Before the introduction of the dividend distribution tax, shareholders were liable for taxes on the dividends they received. Reuters