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The Government of India vide Union Budget 2020 made a historic amendment in the way dividends are taxed in India wherein it abolished the dividend distribution tax (‘DDT’) and restored the traditional way of taxing dividend income i.e. in the hands of shareholders. The amendment brought much needed relief to the non-resident shareholders as most of the tax treaties provide for lower rate of taxing dividend income (5% to 15%) as compared to the erstwhile DDT (20.56%).The Government of India vide Union Budget 2020 made a historic amendment in the way dividends are taxed in India wherein it abolished the dividend distribution tax (‘DDT’) and restored the traditional way of taxing dividend income i.e. in the hands of shareholders. The amendment brought much needed relief to the non-resident shareholders as most of the tax treaties provide for lower rate of taxing dividend income (5% to 15%) as compared to the erstwhile DDT (20.56%).taxmann.com Latest ArticlesRead More