India Said to Mull Shifting Dividend Tax to Investors From Firms

India is considering changes to its dividend distribution tax that will raise returns for investors, according to people familiar with the matter, as authorities try to revive foreign fund inflows.

The budget statement due February will probably include a proposal to tax dividends once they are paid to shareholders, rather than the current system where the company pays the levy, the people said. That will allow individuals to claim refunds in their home jurisdictions, they added, asking not to be identified as the deliberations are private.

The move would be the latest in a series of steps from Prime Minister ...