Mumbai: Banks such as State Bank of India, ICICI Bank and housing finance companies such as HDFC are expected to benefit from the budgetary proposal to removal of the double taxation of dividends paid by a subsidiary company and its parent.
These institutions have large number of subsidiaries and earn a considerable income as dividend from these subsidiaries. At present, dDividend Distribution Tax (DDT) is at 15 per cent. The budgetary proposal now allows the set-off of the tax paid by the subsidiary on dividends declared to parent company. ICICI Bank has 17 domestic and international subsidiaries. SBI has seven associate banks, four foreign subsidiaries and four non-banking subsidiaries. HDFC has 12 associates and subsidiaries. Based on last fiscal''s figures, and calculating DDT at 15 per cent, the amounts these institutions would save would probably work out to be Rs 89.55 crore for SBI, Rs 67.2 crore for ICICI Bank and Rs 17.7 crore for HDFC.
These institutions have large number of subsidiaries and earn a considerable income as dividend from these subsidiaries. At present, dDividend Distribution Tax (DDT) is at 15 per cent. The budgetary proposal now allows the set-off of the tax paid by the subsidiary on dividends declared to parent company. ICICI Bank has 17 domestic and international subsidiaries. SBI has seven associate banks, four foreign subsidiaries and four non-banking subsidiaries. HDFC has 12 associates and subsidiaries. Based on last fiscal''s figures, and calculating DDT at 15 per cent, the amounts these institutions would save would probably work out to be Rs 89.55 crore for SBI, Rs 67.2 crore for ICICI Bank and Rs 17.7 crore for HDFC.
No comments:
Post a Comment