homevideos Newsbusiness NewsBuybacks & dividends: Tax experts discuss pros & cons under new tax regime
Buybacks & dividends: Tax experts discuss pros & cons under new tax regime
In an interview CNBC-TV18, two tax experts Dinesh Kanabar, CEO of Dhruva Advisors and Sudhir Kapadia, National Tax Leader at EY weighed in on the pros and cons of buybacks and dividends under the new tax regime.
In an interview CNBC-TV18, two tax experts Dinesh Kanabar, CEO of Dhruva Advisors and Sudhir Kapadia, National Tax Leader at EY weighed in on the pros and cons of buybacks and dividends under the new tax regime.
Kanabar said tax implication for dividends and buybacks are different based on the recipient.
He further said that individual resident Indian can have to pay tax of up to 43 percent on dividends whereas non-residents can enjoy a tax rate as low as 5 percent on dividends.
If individuals are getting dividends up to Rs 10 lakh, there is no tax, he added.
Smaller taxpayer would be much better off with dividend rather than buybacks, said Kanabar
According to Kapadia, any responsible company does not take decisions only based on tax considerations.
There are many profitable companies which are able to pay dividends, he added.
“I do not think dividend taxation should change once again,” said Kapadia.
Watch video for more
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM