InvestorQ : Is it okay to invest in Majesco for dividend? Dividend yield over 5000, would be taxed 7.5%, and the record date is 25th Dec. Is it okay to stay in for dividend and sell on ex dividend date of 23rd Dec? I have invested 11 shares. Need views on this.
Praful Bhargava made post

Is it okay to invest in Majesco for dividend? Dividend yield over 5000, would be taxed 7.5%, and the record date is 25th Dec. Is it okay to stay in for dividend and sell on ex dividend date of 23rd Dec? I have invested 11 shares. Need views on this.

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Angel dcosta answered.
5 months ago
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There are two things I would like to point out here. Firstly, the dividend, effective from the current fiscal year, is being taxed at the peak rate of tax applicable to you. For example, if you are in the 30% tax bracket then the dividend will also be taxed at the same rate. So there is no tax arbitrage available to you.

Secondly, if you are looking at something like dividend stripping where you take the dividend pay the tax and then book the loss by selling ex-dividend then that is not possible as existing Income tax rules do not permit dividend stripping 3 months before and 9 months after the dividend date.

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