DDT or the Dividend Distribution Tax (DDT) is the tax that the Indian government imposes on companies based on the dividend paid to the company’s investors. However, post Union Budget 2015-16, investors too were levied DDT of 10% on the gross dividend amount if the dividend amount exceeded Rs 10 lakh. This proposal was announced in Union Budget 2015-16 when the Finance Minister said: Dividend Distribution Tax (DDT) uniformly applies to all investors irrespective of their income slabs. This is perceived to distort the fairness and progressive nature of taxes. Persons with relatively higher income can bear a higher tax cost. There has been long-pending expectation that the dividend distribution tax (DDT) be scrapped as it involves dual taxation as companies have to pay dividends out of profits, which are already taxed. Thus, the expectation is the scrapping of DDT so that dividends remain tax free as was the case before the Union Budget 2015-16.