Budget 2018 should also re-look at dividend tax in the hands of the individual receiving the dividend as the same has been already subject to tax twice, firstly when the company earns a profit and secondly when the company issues dividend it pays 20 per cent dividend tax and third time now in the hands of the recipient where again the recipient pays tax on dividend received over Rs 10 Lakhs. It is not fair that the same income should be taxed three times from the taxpayers.
Budget should focus on providing incentives to employment generating industries by way of tax break to further the policy, "Made in India", goal. A clear guideline of the taxation policy is required with regard to personal as well as corporate tax for the next 3 to 5 years so that there is no yearly speculation and companies can make long term business plans based on the same.
(Ajay Agarwal is Finance Director, Entrepreneurs' Organisation, South Asia)
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