Earlier DDT was at source given by corporates and that time investors used to feel dividend is tax free and liked it.
With DDT removed and dividend taxed as per slabs at hands of investors, perception has changed for many.
But fact remains same, dividend was always taxed. Now, no tax is deducted at source but yes investors pay different tax as per their slabs.
IMO paying taxes should not be criteria to like or dislike dividends or to consider it superior or inferior to capital gains.
Dividend plays a different role than capital gains and both are equally important aspects…
Just for example, in this highly uncertain markets, when business is doing well and promoters are ethical, we cannot be certain of capital appreciation over short/medium term because that depends on a lot of other factors…The only closest thing to certainity in such cases “maybe” dividend…
Above is just my opinion and i feel each can have their own in this regard…
Subscribe To Our Free Newsletter |