Personal Finance Budget 2020: Government should do away with dividend distribution tax, say tax experts Updated : January 30, 2020 03:14 PM IST As the government brought down corporate tax rate significantly, India has become competitive globally, says Samir Kanabar of EY The tax rate has come down to almost 17 percent if it’s a new company, otherwise the rate is 25 percent, which is fairly competitive, said Kanabar. The dividend distribution tax should be taken out, which will leave out money in the hands of individuals, he added. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.