Tuesday, March 26, 2013

Why did the Dividend Distribution Tax (DDT) is increased?

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Why did the finance minister raise the DDT?

To mobilise deposits, banks had asked the finance minister to provide better tax treatment to bank fixed deposits (ie, increase the limit of TDS from 10,000, make bank interest tax-free in the hands of investors, etc). Instead, the finance minister has increased the DDT on all non-equity funds.

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