Which of the following tax has been abolished?
A. Corporate Tax
B. Dividend Distribution Tax
C. Tax on Gold
D. Tax on Petroleum Products
Answer:B
Which of the following tax has been abolished?
A. Corporate Tax B. Dividend Distribution Tax C. Tax on Gold D. Tax on Petroleum Products
Explanation: Budget 2020 abolished Dividend Distribution Tax (DDT) on dividends declared by mutual funds. Instead, it made dividends taxable in the hands of investors at their slab rate. For instance, someone in the 30% slab rate would pay a tax at that rate while someone in the 20% slab would pay tax at 20% on mutual fund dividends (debt or equity). This will apply from FY 2020-21. This taxation of dividends is a radically different position from what currently exists.