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New dividend tax to hurt Premji, Mukesh Ambani the most


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Kersie Madon
Dividend tax.
by Kersie Madon on Mar 02, 2016 05:23 PM

Dividend tax was abolished solely bec it amounted to double taxation. Co: was paying tax on income & income distributed to shareholders by way of dividend. Same income is being taxed again.

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Kannan S
Inconsistent Tax Policy
by Kannan S on Mar 02, 2016 11:40 AM  | Hide replies

The proposal to levy additional Divident Tax is inconsistent with the policy to reduce taxation to improve Compliance. Even after many years of a reasonable tax regime, we are unable to control the circulation of black money. If we begin stepping up taxing of the rich, we will again give space for the generation of black money.

I am not particularly trying to argue for the rich. I am pointing out the inconsistency. Essentially, the money received as divident has already been subject to Income tax at the hands of the Corporate, followed by the Divident Distribution Tax paid by the Corporate. To say that this share of the profit earned should once again be subjected to additional income tax is not fair. By following this path, we will be pitting the poor against the rich and clearly create a more divisive society.

The interest of the rich stakeholders to reach out and engage in philanthropic work will get discouraged. If we think, the government has the power to tax and so we will target the rich, we will end up having a new form of communism that will eventually take us to a failed society.

Rich bashing may have a feel good effect. But, it will discourage the start up India initiative. It is a mindset that we should not succumb to.

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Swissbanker
Re: Inconsistent Tax Policy
by Swissbanker on Mar 02, 2016 12:52 PM
Capricious taxation just creates problems for corporations to plan their returns and tax and cash flow over a long term horizon. This is why the West scores over emerging markets as a refuge for big capital which begins a virtuous cycle of prosperity. You can't tax your way into prosperity.

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Thomas Chacko
Tax and hurt
by Thomas Chacko on Mar 02, 2016 11:34 AM

Please don't use words like "hit" and "hurt" when talking about the effect of a 10% tax hike on the dividend incomes of super-rich businessmen like Azim Premji and Mukesh Ambani. A few billions less is not going to make any material difference to the life style or further investment decisions of these people, whose total income runs into hundreds of billions. For example, 164 crores out of 1644 crores is peanuts for the Reliance chief, while it is equal to the funding of several colleges run by the government.An annual dividend receipt of 1644 crores is at least 1644000 times more than the life-time savings of an average educated Indian. An additional payout of 164 crores is not going to hit or hurt the top earners of this poor land.

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Jagdish Dubey
Long awaited
by Jagdish Dubey on Mar 02, 2016 11:09 AM

Top earners should contribute the most to our budget. One wonders why it took so long to bring this change and that too by a government opposition has been blaming to be friendly to big businesses.
This is nothing. Top guys must follow Bill gates and Gandhiji's principle of trustiship. What they earn is not theirs. They are just trusties of the businesses they head. Income from the same must come to the common people. It is good this government has realised this. Why must only the cash cow of salaried class of MNCs pay for every. So called public servants rake up so much in freebees without paying any tax. Delhi legislators have taken a hike of WHOOPING 400% in their salary on top of all free benefits worth huge unaccounted income per month. Bungalow in Lutyens itself would be a few crores pa in rent! And what do they apy by way of Itax. C'mon AAP is headed by an ex IT Officer.ome clean on this

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Gajendra Bisht
Why rediff stomach is paining
by Gajendra Bisht on Mar 02, 2016 11:06 AM

why rediff stomach is paining when mr mukesh ambani and azim premji is taxed

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