Is India Inc likely to announce a flood of dividends?
The announcement in the Union Budget to tax dividends at 10% in the hands of shareholders has given rise to a new situation in markets. Although, this applies only to shareholders receiving dividends over Rs.10 lakhs per annum, most large shareholders, investors and promoters are likely to be affected. The question is will this lead to a deluge of dividends in the month of March? More so, since the new dividend tax kicks off from April 01st, it gives companies that window to declare tax-free dividends in the month of March itself. Continue reading
