For stock market investors, there is a persistant doubt about dividend eligibility. In order to clarify in indian or even in international context, I am offering my advice on these lines.
In order to get tax free dividend, try to purchase any stock before ex-dividend date. Sell it on ex-dividend date. You are eligible for dividend and it will be credited in your bank directly. The investors should not confuse with record opening and closing dates which is nothing but execution based on ex-dividend date.
Suppose Ashok leyland ex-dividend date is 12.7.12 and book closure starts after 2 working days. So if you purchase on 11.7.12, you are entited for dividend. On 12.7.12 and thereafter you can sell it at ex-dividend rate which is without dividend. Hope this clarifies many in investing share field.
Every salary earner is advised to keep their savings in the following patters after making allowance for family whole life insurance, children education plan etc.
a)40% of their savings in fixed deposits and tax saving instruments.
b)20% in land.
c)15% in gold and silver
d) Balance in equity market including debt.