Abstract:

The taxation system is always intense research for the researchers from its existence to the framing of legal entity to prevailing period as modified shape as we are dealing Today. It has a complex nature that has covered wider critical concepts. It has raised issues in different periods of time which has attracted the various parties to enhance the potential impact towards different assesses to get tax benefits legally especially assesses of the corporate sector because they are also legally responsible to pay different parties in various from as one of important payment is the dividend. Every assessee is liable to pay tax under different heads to follow a certain tax slab as per his/her yield or income earned during the previous year. This paper analyses the impact of taxation policies amongst firms from the traditional to the modern period towards dividends and its effect on various Components during the two periods. The traditional period assumed from legal structured framework i.e., Income-tax Act 1961 to the period of 1990, and the modern period assumed after the introduction of economic reforms 1991 to the period of assessment in 2019-2020. In the Indian taxation system, there have been various provisions occurred that have brought changes to the corporate environment and amendments, not only decade by decade but year by year for a variety of reasons of the government that has changed the economy. The tax slab also introduces in the budget of every year which is found more flexible as well as certain new provisions to be implemented. That has not only brought significant changes in the environment of the corporate sector but after the introduction of various other Acts that became the challenge for the assesses to deal in a way for fulfilling their own objectives by the following of the norms. It is the responsibility of the management to make possible to fill the promises towards the shareholders to give dividend and give more dividend on their investment than ever before. That has given an attraction to me to work on the cited topic and find out the impact between taxation Policies and dividend analysis in two periods i.e., traditional and modern.

Keywords: