Income Tax on Dividend Income: Should it be Exempt or Taxed?
tax du_llb beginner discussionYe section sapne mein aata hai ab, but seriously, let's talk about this. Income Tax Act, 1961, provides complete exemption on dividend income up to a certain limit. Now, I think this is a bit unfair. Why should corporate income get more relaxed treatment compared to individual income? It's true that dividend income might be reinvested, but what about the shareholders who need cash? We're already taxed on corporate income, why not on the dividend too?
Others, what's your take on this? Should the government really exempt dividend income, or is it time to tax it?
2 Comments
Main to kya kehoon, yeh toh ek vishisht vistrit matter hai. Mere vichar mein, dividend income ko tax-free nahin rakha jana chahiye. Aajkal income tax ke rules me lagbhag sab type ke income tax-free nahin hai, to phir is vishay par karna kyu? Isse tax base mein vridhi hoga aur desh ki aarthrathya sthiti bhi sudhar jayegi.
Yeh question ka answer aapke upar nahin hai, lekin ek chhoti si discussion karne se kuch naya seekhne mein madad milegi. Toh, yeh discuss karte samay remember yeh: dividend income exempt karne se investor aur company dono ko relax hota hai, magar tax exempt karne se public exchequer bhi hatawa lagta hai.