India - Income Tax Act 2010 - Saarc

S. 115-O I.T. ACT, 1961 1.57413[CHAPTER XII-DSPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTEDPROFITS OF DOMESTIC COMPANIESTax on distributed profits of domestic companies.115-O.14[(1) Notwithstanding anything contained in any other provision ofthis Act and subject to the provisions of this section, in addition to theincome-tax chargeable in respect of the total income of a domestic company forany assessment year, any amount declared, distributed or paid by such companyby way of dividends (whether interim or otherwise) on or after the 1st day ofApril, 2003, whether out of current or accumulated profits shall be charged toadditional income-tax (hereafter referred to as tax on distributed profits) at therate of 15 [fifteen] per cent.]16[(1A) The amount referred to in sub-section (1) shall be reduced by,—(i) the amount of dividend, if any, received by the domestic companyduring the financial year, if—(a) such dividend is received from its subsidiary;(b) the subsidiary has paid tax under this section on such dividend;and(c) the domestic company is not a subsidiary of any other company :Provided that the same amount of dividend shall not be taken intoaccount for reduction more than once;(ii) the amount of dividend, if any, paid to any person for, or on behalf of,the New Pension System Trust referred to in clause (44) of section 10.13. Chapter XII-D, consisting of sections 115-O to 115Q, inserted by the Finance Act, 1997,w.e.f. 1-6-1997.14. Substituted by the Finance Act, 2003, w.e.f. 1-4-2003. Prior to its substitution, sub-section(1), as amended by the Finance Act, 2000, w.e.f. 1-6-2000, Finance Act, 2001, w.e.f. 1-6-2001and Finance Act, 2002, w.e.f. 1-4-2003, read as under :“(1) Notwithstanding anything contained in any other provision of this Act and subject tothe provisions of this section, in addition to the income-tax chargeable in respect of thetotal income of a domestic company for any assessment year, any amount declared,distributed or paid by such company by way of dividends (whether interim or otherwise)on or after the 1st day of June, 1997 but on or before the 31st day of March, 2002, whetherout of current or accumulated profits shall be charged to additional income-tax (hereafterreferred to as tax on distributed profits) at the rate of ten per cent.”15. Substituted for “twelve and one-half” by the Finance Act, 2007, w.e.f. 1-4-2007.16. Substituted by the Finance (No. 2) Act, 2009, w.r.e.f. 1-4-2009. Prior to its substitution, subsection(1A), as inserted by the Finance Act, 2008, w.e.f. 1-4-2008, read as under :“(1A) The amount referred to in sub-section (1) shall be reduced by the amount of dividend,if any, received by the domestic company during the financial year, if—(a) such dividend is received from its subsidiary;(b) the subsidiary has paid tax under this section on such dividend; and(c) the domestic company is not a subsidiary of any other company:Provided that the same amount of dividend shall not be taken into account for reductionmore than once.Explanation.—For the purposes of this sub-section, a company shall be a subsidiary ofanother company, if such other company holds more than half in nominal value of theequity share capital of the company.”