The Great Indian Dividend Festival. Stock Market News.









Great Indian Dividend Festival will start soon, know its big things.



Companies are announcing dividends soon. In fact, in the budget introduced earlier this month, Finance Minister Nirmala Sitharaman announced a change in the tax rules on dividends. Accordingly, the dividend will no longer have to be taxed to the shareholder, not to the company. The new rules will come into force from the next financial year. This will allow the tax rate on dividends to reach 43%.

After February 1, a total of 204 companies have declared dividends. The number was 90 in 2019 and 98 in 2018. Within the next two to three days, a board meeting of 32 companies will be held, in which the proposal for dividend can be approved.

On February 21, the board of Bajaj Auto held a meeting and announced an interim dividend of 1,200 per cent or Rs 120 per share. The auto company announced dividends in 2018 and 2019 in May.

On February 14, Mr Cement announced a dividend of 1,100 per cent, which was 250 per cent in 2019 and 200 per cent in 2018. The Symphony also announced a special dividend of 900 per cent on 7th February. Divis Labs flagged off 800 per cent dividend on February 12.

Domestic shareholders will not have to pay any tax on dividends from companies before the new tax rules are implemented. However, if the income from the dividend is above Rs 10 lakh, then there is a dividend. However, after the completion of the dividend distribution tax, the shareholders will have to pay tax on the basis of income tax slab.

Vijay Bhushan, president of the Indian National Exchange Member Association (ENMI), said, "Companies where the promoter stake is high, want to pay dividends before March 31." Typical promoters and trusts are taxpayers of the highest income category.

On February 14, Balakrishna Industries announced an interim dividend of 800 per cent, while in 2019 it announced 100 per cent and in 2018, 75 per cent dividend. Earlier, all these companies announced a dividend in May.

There was a similar competition in 2002 when the then finance minister, Yashwant Sinha, made the dividend taxable in the hands of investors. In 2007, a dividend was announced. Then Finance Minister P Chidambaram had raised the DDT rate from 12.5 per cent to 15 per cent.

After Chidambaram's announcement, more than 300 companies had announced substantial dividends. The dividend distribution tax has been abolished in the budget of 2020. The burden has been placed solely on the shareholders.

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