BENGALURU: The change in the political and economic landscape after the honorable Prime Minister Shri Narendra Modi came into the reign was very significant. Modi’s Budget 2015 is very soon going to hit the Lok Sabha this session with changes in various measures.  Corporates have lots of expectations from the new government’s first full-fleged Budget. The government is likely to spur investment activity and all round development in the country in this session.

Let’s have a look on certain bold measures that is likely to be changed in this budget session as compiled by Business Today:

1. Reduction In Dividend Distribution Tax Rate Along with Substituting of DDT Withholding Tax For Foreign Investors: As the DDT concept is uncommon for the foreign investors. In present situation, the dividend distribution tax rate is not eligible for tax credit in the foreign investor’s home countries. 

If the DDT paid by them can be converted into the withholding tax , then it would be a helpful node for the foreign investors enabling them to claim the tax credit in their home country.

Their claim for the tax paid with the dividends in India will be accepted without any loss of revenue to the Indian tax authorities.The DDT tax rate expected to be lowered to 10 percent along with substituting it in the upcoming budget session 2015.

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Budget: 2015: To Bring Notable Changes In Income Tax And Corporate Tax