INDIA BUSINESS WORLD - FEBRUARY 16th - FEBRUARY 29th - 2008
RELIEF PROVIDED IN DIVIDEND DISTRIBUTION TAX
The General Budget 2008-09 has provided relief in the Dividend Distribution Tax (DDT). A parent company is now allowed to set off the dividend received from its subsidiary company against dividend distributed by the parent company, provided that the dividend received has suffered DDT and the parent company is not a subsidiary of another company.
Changes have been effected in the Securities Transaction Tax (STT). STT will now be treated like any other deductible expenditure against business income. Further the levy of STT in the case of options will be only on the option premium where the option is not exercised, and the liability will be on the seller. In case where the option is exercised, the levy will be on the settlement price and the liability will be on the buyer. However, there will be no change in the present rates.
Commodities Transaction Tax (CTT) has been introduced in this years Budget on the same lines as STT on options and futures.
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