Union Budget 2020: Industry Captains Welcome Abolition of DDT, Other Measures
Industry captains of the Federation of Indian Chambers of Commerce & Industry (FICCI) and Confederation of Indian Industry (CII) welcomed many of the initiatives announced by the Union Finance Minister Nirmala Sitharaman in Union Budget 2020. The removal of the Dividend Distribution Tax (DDT) that is levied on dividends issued by companies was widely welcomed by industrialists.
Dividend income will now instead be taxed only in the hands of investors as per the tax rate applicable to their income, she said, during the course of her Union Budget 2020 speech. Companies were required to pay DDT at 15%, but the effective rate reached as much as 20.50% with surcharge and cess added up.
FICCI welcomed the scrapping of DDT and cited it as one of its recommendations to the government.
Dividend Distribution Tax (DDT) to be removed, companies will not be required to pay DDT; dividend to be taxed only at the hands of recipients, at applicable rates: FM Ms @nsitharaman.#BudgetWithFICCI #BudgetSession2020 @drsangitareddy @yogendramodi pic.twitter.com/2EsT9M68ie
— FICCI (@ficci_india) February 1, 2020
CII also welcomed the abolition of DDT:
#CIIatBudget20➡CII strongly appreciates removal of Dividend Distribution Tax & introduction of classical system of taxing dividend in the hands of shareholders. This has been a long standing request of CII. #cii4india #BudgetSession2020 @IncomeTaxIndia
— Confederation of Indian Industry (@FollowCII) February 1, 2020
The FICCI said its recommendations on the capital market sector had been accepted by the government:
.@ficci_india recommendations for #CapitalMarket sector accepted in #Budget2020.#BudgetWithFICCI #BudgetSession2020 @drsangitareddy @yogendramodi @rasheshshah @FinMinIndia @nsitharaman @DoC_GoI pic.twitter.com/UVrfQ56J46
— FICCI (@ficci_india) February 1, 2020
The FICCI also commended the impetus provided to the start-up sector:
.@ficci_india recommendations for #startup sector accepted in #Budget2020.#BudgetWithFICCI #BudgetSession2020 @drsangitareddy @yogendramodi @startupindia @sarafmohit pic.twitter.com/Ev68KZVy39
— FICCI (@ficci_india) February 1, 2020
Reacting to the allocations for the Agri sector, the FICCI thanked the government for taking its recommendations on agri-warehouse grid into account:
.@ficci_india recommendations for a plan for the launch of the national agri warehouse grid accepted in #Budget2020.#BudgetWithFICCI #BudgetSession2020 @drsangitareddy @yogendramodi @AgriGoI pic.twitter.com/UnPYuN9Uy9
— FICCI (@ficci_india) February 1, 2020
It also welcomed viability gap funding for healthcare targeting two-tier and three-tier cities:
#CIIatBudget20➡CII appreciates viability gap funding for #healthcare in tier 2 and tier 3 cities. This is in line with CII recommendations to create a dedicated healthcare #infrastructure fund to enable healthcare to reach tier 2 and tier 3 cities in #India🇮🇳. #cii4india
— Confederation of Indian Industry (@FollowCII) February 1, 2020
CII also said that it welcomed the government's move on 100 water-stressed districts:
#CIIatBudget20➡CII welcomes move on developing comprehensive measures for 100 #water stressed districts. CII can partner with Govt with its #WATSCAN tool. #cii4india #BudgetSession2020 #CIITWI
— Confederation of Indian Industry (@FollowCII) February 1, 2020