India - Income Tax Act 2010 - Saarc

1.1031 APPENDIX(9) Where a company buys-back its securities under this section, it shall maintain a registerof the securities so bought, the consideration paid for the securities bought-back, the dateof cancellation of securities, the date of extinguishing and physically destroying ofsecurities and such other particulars as may be prescribed.(10) A company shall, after the completion of the buy-back under this section, file with theRegistrar and the Securities and Exchange Board of India, a return containing suchparticulars relating to the buy-back within thirty days of such completion, as may beprescribed :Provided that no return shall be filed with the Securities and Exchange Board of India bya company whose shares are not listed on any recognised stock exchange.(11) If a company makes default in complying with the provisions of this section or anyrules made thereunder, or any regulations made under clause (f) of sub-section (2), thecompany or any officer of the company who is in default shall be punishable withimprisonment for a term which may extend to two years, or with fine which may extendto fifty thousand rupees, or with both.Explanation.—For the purposes of this section,—(a) “specified securities” includes employees’ stock option or other securities as maybe notified by the Central Government from time to time;(b) “free reserves” shall have the meaning assigned to it in clause (b) of Explanationto section 372A.Prohibition of tax-free payments.SECTION 200 OF COMPANIES ACT, 1956200. (1) No company shall pay to any officer or employee thereof, whether in hiscapacity as such or otherwise, remuneration free of any tax, or otherwise calculatedby reference to, or varying with, any tax payable by him, or the rate or standard rate of anysuch tax, or the amount thereof.Explanation.—In this sub-section, the expression “tax” comprises any kind of income-taxincluding super-tax.(2) Where by virtue of any provision in force immediately before the commencement ofthis Act, whether contained in the company’s articles, or in any contract made with thecompany, or in any resolution passed by the company in general meeting or by thecompany’s Board of directors, any officer or employee of the company holding any officeat the commencement of this Act is entitled to remuneration in any of the modesprohibited by sub-section (1), such provision shall have effect during the residue of theterm for which he is entitled to hold such office at such commencement, as if it providedinstead for the payment of a gross sum subject to the tax in question, which, afterdeducting such tax, would yield the net sum actually specified in such provision.(3) This section shall not apply to any remuneration—(a) which fell due before the commencement of this Act, or(b) which may fall due after the commencement of this Act, in respect of any periodbefore such commencement.SECTION 205(1) OF COMPANIES ACT, 1956Dividend to be paid only out of profits.205. (1) No dividend shall be declared or paid by a company for any financial year exceptout of the profits of the company for that year arrived at after providing fordepreciation in accordance with the provisions of sub-section (2) or out of the profits ofthe company for any previous financial year or years arrived at after providing for