High tax takes sheen off generous MNC dividends

The cumulative tax rate on dividend income is the highest in India as compared to other countries, followed by South Korea, the UK and the US, said ANMI. In Japan, capital losses on listed shares can be offset against dividend income.


For investors in the highest tax bracket, the abolition of dividend distribution tax (DDT) has meant an effective tax incidence of 43 per cent.

Mumbai: Since Chandrakant Sampat began buying into top MNCs five decades ago after they had begun to list locally, the rich and the astute in Mumbai followed the late value-investing pioneer to multiply their wealth, helping these stocks establish their credentials as all-weather wealth creators. But a change in dividend laws has dimmed their allure for India’s HNIs — ironically at a time of record payouts.For investors in the highest tax

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