By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
BeFirsTrankBeFirsTrank
  • Home
  • Car Reviews
  • Auto Shows
  • Bike Reviews
  • Future
  • New Car
  • Used Car
  • Contact Us !
Reading: Over a Dozen Companies Announce Dividend Post Budget; More to Follow
Share
Aa
Aa
BeFirsTrankBeFirsTrank
  • Home
  • Car Reviews
  • Auto Shows
  • Bike Reviews
  • Future
  • New Car
  • Used Car
  • Contact Us !
Search
  • Home
  • Car Reviews
  • Auto Shows
  • Bike Reviews
  • Future
  • New Car
  • Used Car
  • Contact Us !
Have an existing account? Sign In
Follow US
© 2023 BeFirsTrank News Network
News

Over a Dozen Companies Announce Dividend Post Budget; More to Follow

srijita
Last updated: 2016/03/06 at 2:56 PM
By srijita 3 Min Read
Share
SHARE
Over a Dozen Companies Announce Dividend Post Budget; More to Follow

New Delhi: Post the Union Budget 2016-17, more than a dozen companies, including Alkem Laboratories, Cadila Healthcare and Suven Life Sciences, have announced dividends and many more are likely to follow.

The government in the budget proposed that in addition to Dividend Distribution Tax (DDT) paid by the companies, tax at the rate of 10 per cent of gross amount of dividend will be payable by the recipients, that is, individuals, HUFs and firms receiving dividend in excess of Rs. 10 lakh per annum.

The new tax proposal will be applicable from April 1.

DDT uniformly applies to all investors irrespective of their income slabs.

“Those promoters who will be at the receiving end of this announcement are likely to encourage companies to declare higher dividends before March 31,” a report by Centrum Wealth Research said.

So far, 13 companies, including Aegis Logistics, Allcargo Logistics, Divis Lab and Godrej Industries have made dividend announcement post Budget 2016-17.

The report further noted that the companies with high promoter shareholding will also prefer preponing dividend payout and may pay most of it before March 31, so that they do not end up paying 10 per cent tax on their dividend income.

This could lead to a rise in dividend distribution in the next one month.

“The rationale behind the move is that those who have high dividend income are subjected to tax only at the rate of 15 per cent (DDT paid by companies), whereas such income in their hands would have been chargeable to tax at the rate of 30 per cent,” the report said.

“However, once the move comes into effect from April 1, companies may avoid declaring high dividends and may opt for the more tax-effective buy-back option,” it added.

“Similar flurry of dividend distributions have been noticed in the month of March in every year whenever changes have been made in the rates or modes of taxation of dividends.”

Some have already set a record date, while others will have board meetings to consider an interim dividend, payable before March 31, 2016 in order to escape the 10 per cent additional tax.

[“source-ndtv”]

You Might Also Like

How Google’s AI can help transform health professions education

Certified AC Technicians in Ocala: Your Local Cooling Experts

Beyond the Map: What Modern Vehicle Tracking Can Do for Your Business

What Should My Video Game Room Have?

From Traditional Payments to Innovative Solutions: How Car Insurance Is Adapting to Modern Needs

TAGGED: A, Announce, Budget, Companies, Dividend, Dozen, Follow, more, Over, Post, to
srijita March 6, 2016
Share
Previous Article Minda Zooms Over 18% as Company Buys Lighting Business of Spain’s Rinder
Next Article Buy L&T, Hindalco, BHEL: Sumeet Bagadia

Calendar

September 2025
MTWTFSS
1234567
891011121314
15161718192021
22232425262728
2930 
« Aug    

Latest Trending News

  • How Google’s AI can help transform health professions education September 3, 2025
  • Your Ebike Battery is Draining Too Quickly? Six Reasons August 29, 2025
  • Test of Turbo Petrol-Powered Automobiles: Actual City and Highway Fuel August 26, 2025
  • Buying a Used VW Car in Albuquerque? Here’s What to Know August 21, 2025
  • What to Do If the Trunk of Your Nissan Won’t Open August 20, 2025
  • Fatherhood, marriage, and Longevity in the August 14, 2025
  • Style, Luxury, and Innovation in a New Car Coming in 2024 August 13, 2025

© 2023 Befirstrank News Network. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?