The country’s general budget (Budget 2024) has been presented. The government has presented its roadmap for the next five years from taxes to all government schemes. After the budget, Finance Minister Nirmala Sitharaman participated in Aaj Tak’s associate channel India Today-Business Today Round Table 2024 and talked openly about each and every announcement of the budget. Veteran investor Vijay Kedia was also present in this program and he posed his question to the Finance Minister in a very special way, which is going viral on social media. In fact, he raised the issue of tax on dividends by singing a song in front of the Finance Minister. Let’s see what was special in this song…
Veteran investor sang a song for the Finance Minister
Finance Minister Nirmala Sitharaman participated in India Today-Business Today Budget Round Table 2024 on Saturday and clarified the picture on all the questions related to the budget. During this time, when veteran investor Vijay Kedia, who was present in the program, was invited to ask questions, Kedia, standing with a mike in his hand, suddenly started singing a song in front of the Finance Minister. However, his question was also included in this song. Yes, perhaps you have never seen anyone singing a song in this style for any Finance Minister of the country before.
This is how questions were raised regarding tax on dividends
If you look at the lyrics of Vijay Kedia’s song, they were ‘Madam tax is on Dividend ke usar kyun baar baar…’ Yes, the investor expressed his concern about the tax on dividend in front of the Finance Minister, he sang his song. He also mentioned the goal of Modi 3.0 and said, ‘Madam Baithi Hai Karne, all the worries go away… India is ready to become a 10 trillion dollar economy’. After listening to his song, not only the Finance Minister Nirmala Sitharaman, but everyone present there. Someone was seen smiling.
“Madam takes tax on dividend again and again…” Ever seen someone croon a tune for Finance Minister Nirmala Sitharaman? Don’t miss#EXCLUSIVE #NirmalaSitharaman #ITVideo #Budget2024 #UnionBudget24 | @nsitharaman @VijayKedia1 @rahulkanwal pic.twitter.com/V3XFZSrSr2
— IndiaToday (@IndiaToday) July 27, 2024
Finance Minister started clapping
While presenting this song, Vijay Kedia also told the Finance Minister that he had written this song about 3 years ago and today he got a chance to sing it. Hearing his song full of questions, even Finance Minister Nirmala Sitharaman could not stop herself from clapping. When Rahul Kanwal, who was hosting the program, asked the Finance Minister whether anyone had ever sung a song like this for him before, he shook his head and said, ‘Never…’
Understand this way, what is dividend?
It is noteworthy that Vijay Kedia is counted among the leading stock market investors of the country and he has been working in this sector for almost 3 decades. Now let us talk about the issues raised by him through songs, so first let us understand what is this Dividend? Actually, many companies can distribute a part of their profit among their shareholders and this part distributed from the company’s profit is called dividend.
For example, the face value of a company’s share is Rs 10 and the company declares a dividend of Rs 10 per share, then it means that the company is giving 100% dividend. Whereas if the same company declares a dividend of Rs 20 per share, then it is giving 200 percent dividend to the investors.
How is tax levied on Dividend?
Talking about tax on dividends, if an investor investing in the share market receives a dividend of more than Rs 5,000 from the company, then TDS is deducted on it. That means, if an investor gets a dividend of Rs 10,000, then 10 percent TDS is deducted on the dividend under Section 194 of Income Tax. Whereas if dividend is received on investment made in a foreign company, then separate rules have been fixed for it. These are different for residents and non-residents. If the resident is an Indian, then the dividend from the foreign company will be taxed, whereas the non-resident Indian is exempt from tax.