Companies Declare Dividend to escape Tax

Many companies in India are declaring dividends to escape the higher dividend distribution tax that comes into effect from April-1st.

As man as 15 companies declared dividends today which include but not restricted to,

  • Reliance Industries Ltd
  • Hindalco
  • Kansai Nerola Paints
  • Himatsingka Seide
  • Bajaj Electricals

It will be interesting to see the dividend distribution patterns in PSU enterprises such as ONGC, NTPC and Banks which pay hefty dividends back to the Government. So far none of the PSUs have opted to play this game to escape from tax.