India - Income Tax Act 2010 - Saarc

1.575 CH. XII-D - SPECIAL PROVISIONS RELATING TO TAX ON PROFITS S. 115PExplanation.—For the purposes of this sub-section, a company shall be a subsidiaryof another company, if such other company, holds more than half innominal value of the equity share capital of the company.](2) Notwithstanding that no income-tax is payable by a domestic company on itstotal income computed in accordance with the provisions of this Act, the tax ondistributed profits under sub-section (1) shall be payable by such company.(3) The principal officer of the domestic company and the company shall be liableto pay the tax on distributed profits to the credit of the Central Governmentwithin fourteen days from the date of—(a) declaration of any dividend; or(b) distribution of any dividend; or(c) payment of any dividend,whichever is earliest.(4) The tax on distributed profits so paid by the company shall be treated as thefinal payment of tax in respect of the amount declared, distributed or paid asdividends and no further credit therefor shall be claimed by the company or byany other person in respect of the amount of tax so paid.(5) No deduction under any other provision of this Act shall be allowed to thecompany or a shareholder in respect of the amount which has been charged totax under sub-section (1) or the tax thereon.17[(6) Notwithstanding anything contained in this section, no tax on distributedprofits shall be chargeable in respect of the total income of an undertaking orenterprise engaged in developing or developing and operating or developing,operating and maintaining a Special Economic Zone for any assessment year onany amount declared, distributed or paid by such Developer or enterprise, byway of dividends (whether interim or otherwise) on or after the 1st day of April,2005 out of its current income either in the hands of the Developer or enterpriseor the person receiving such dividend 18 [***]].Interest payable for non-payment of tax by domestic companies.115P. Where the principal officer of a domestic company and the company failsto pay the whole or any part of the tax on distributed profits referred toin sub-section (1) of section 115-O, within the time allowed under sub-section (3)of that section, he or it shall be liable to pay simple interest at the rate of 19 [one]per cent for every month or part thereof on the amount of such tax for the periodbeginning on the date immediately after the last date on which such tax waspayable and ending with the date on which the tax is actually paid.17. Inserted by the Special Economic Zones Act, 2005, w.e.f. 10-2-2006.18. Words “not falling under clause (23G) of section 10” omitted by the Finance Act, 2006, w.e.f.1-4-2007.19. Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f.8-9-2003. Earlier the quoted words were amended by the Finance Act, 2000, w.e.f. 1-6-2000and Finance Act, 2001, w.e.f. 1-6-2001.