Dividend Taxation and Harmonisation of Depreciation Rates-Some Policy Suggestions

This paper examines the vital issue of inherent inequity in the new dividend tax policy enunciated in the Central Budget, 1997-98. This raises the question of distributive justice and also whether such a tax system conforms to the preamble of our Constitution which professes social and economic justice. The paper, therefore, suggests that while the new dividend tax system may be retained, it should be combined with the levy of TDS at modest rates on the shareholders