India’s startup scene is buzzing with energy, big ideas, and ambitious founders. But many of these companies, even after going public, continue to report losses year after year. Nithin Kamath, founder and CEO, Zerodha, believes this isn’t just a business choice — it’s deeply linked to how India’s tax system works.
DIVIDENDS VS CAPITAL GAINS
Kamath pointed out that taking money out of a business as dividends is heavily taxed.
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"If you take money out of a business as dividends, the effective tax rate is 52% (25% corporate tax + 35.5% on personal income).
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