Volume 1 - Issue 4 (April 2021)

A Comparative Study on the Relationship of Funds of Firm from Traditional Vs. Modern New Taxation Policies towards Dividend Concerning India

- Shagufta Parveen * and A. Sajeevan Rao


The business funds utilize for various purpose with its maximum yield of return as per promise towards various types of investors especially payment of dividend to shareholders is a challenging task. The expansion of needs of funds for the firm increases for various purposes, from traditional taxation policies to modern taxation policies. The traditional period of taxation assumed from the introduction of the income tax Act 1961 till the introduction of the economic policies or reforms and modern taxation policies covered from the introduction of economic policies till 2019-20. Funds or corporate finance deals with the financial decisions of business enterprises and the tools are used to analyze to make financial decisions. It brings efficiency and effectiveness for the firms to continue for a longer period after paying dividends too. This study is based on the comparative study on the relationship of funds of the firm from traditional taxation policies to modern new taxation policies towards dividend concerning India that exist positive relationship. The study follows mixed approach.


Key Words: Taxation policies, Cess, Funds structure, Dividend