Market News
Vijay Kedia urges FM to scrap dividend tax on equities
Published 2026-05-30 · Bazaar Watch Research
- Veteran investor Vijay Kedia appealed to the Finance Minister to remove dividend taxation on listed equities.
- This is Kedia's second recent suggestion for capital market reforms, following his call to abolish LTCG tax.
- Kedia argues that dividends are unfairly double-taxed, unlike interest on debt, despite higher equity risk.
- His appeal comes amidst a languishing Indian stock market, with Nifty 50 down 8% this year.
- Long-term equity investors and those seeking dividend income would benefit from increased post-tax returns.
- Indian companies might find it easier to attract patient equity capital, potentially boosting market valuations.
- Monitor ongoing policy discussions regarding capital gains and dividend taxation for potential market impacts.
- Continue to research fundamentally strong companies with consistent dividend payouts for long-term portfolio growth.
