corporate debt

Jan 19, 2020, 07.40 AM IST



What is Dividend Distribution Tax & how will its abolition impact the economy?

A dividend is a sum of money given by a company to its shareholders out of the profits earned. Dividend distribution tax is the tax levied on the dividend paid by a company to its shareholders. The provisions of DDT were introduced by the Finance Act 1997. Only a domestic company is liable and has to pay the tax even if it is not liable to pay any tax on its income.

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