Finance Act 2020 abolishe dividend distribution to tax shifts the burden of tax on dividend over the shareholders. Finance Act proposes for moving towards classical system of taxing dividends in the hands of shareholders/unitholders. The dividend is income in the hands of shareholders and not a company. Therefore, the incidence of tax should fall on the shareholders.
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)