Stock markets don't have to worry on Budget: Chidambaram

New Delhi, Feb 28 (UNI) Finance Minister P Chidambaram today said the capital markets need not have any apprehensions over the Budget proposals on minimum alternate tax (MAT), fringe benefit tax (FBT) and dividend distribution tax (DDT) even as the sensex fell 540 points (4.01 per cent) to close at 12,398, lowest since October 27, 2006.

While MAT was not an additional liability as it was only an advance tax, esop would be treated as a fringe benefit only if the option was exercised by the employees, Mr Chidambaram said at a post-Budget press conference.

Similarly, if the DDT was taxed at the hands of the investor it would be charged at a minimum rate of 20 per cent, while the DDT was sought to be hiked from 12.5 per cent to 15 per cent.

The companies normally factored the DDT into the dividend percentage while it was declared, he explained.

All this would make it clear that ''no extra burden has been placed on the corporate sector,'' the Finance Minister said.

UNI