Section 72 - Amendment of Act 63 of 1960 - Finance Act, 1965

72. Amendment of Act 63 of 1960 In the Preference Shares (Regulation of Dividends) Act, 1960, - (i) in section 2, - (a) in clause (b), for the words, brackets, figures and letters clause (7A) of section 2 of the Indian Income-tax Act, 1922 (11 of 1922), and includes a company referred to in sub-clause (ii) of clause (5A) , the following shall be substituted, namely :- clause (26) of section 2 of the Income-tax Act, 1961 (43 of 1961), and includes a company referred to in sub-clause (ii) of clause (17) ; (b) in clause (c), the words, figures and letters having been issued and subscribed for before the 1st day of April, 1960 shall be omitted; (c) in clause (d), for the words and figures Indian Income-tax Act, 1922 (11 of 1922) , the words and figures Income-tax Act, 1961 (43 of 1961) shall be substituted; (ii) in section 3, - (a) in sub-section (1) and in sub-section (3), after the words preference share of a company , the words, figures and letters issued and subscribed for before the 1st April, 1960 shall be inserted; (b) in sub-section (2), after the words, figures and letters after the 31st March, 1959 , the words, figures and letters and before the 1st April, 1960 shall be inserted; (c) in sub-section (4), after the words preference share , the words figures and letters issued and subscribed for before the 1st April, 1960 shall be inserted; (d) in sub-section (6), - (i) after the words in this section , the words, figure and letter and section 4A shall be inserted; (ii) for the words, brackets, figures and letter sub-section (3D) of section 18 of the Indian Income-tax Act, 1922 (11 of 1922) , the words and figures section 194 of the Income-tax Act, 1961 (43 of 1961) shall be substituted; (iii) in section 4, - (a) for the words where any preference share has been issued by a company any portion of the profits and gains of which , the following shall be substituted, namely :- Where any preference share of a company has been issued and subscribed for before the 1st April, 1960, and any portion of the profits and gains of the company ; (b) for the words and figures Indian Income-tax Act, 1922 (11 of 1922) , the words and figures Income-tax Act, 1961 (43 of 1961) shall be substituted; (iv) after section 4, the following section shall be inserted, namely :- 4A. Deduction of income-tax. - Where the stipulated dividend in respect of a preference share of a company - (a) is specified to be subject to income-tax and a deduction is made therefrom on account of the income-tax payable by the company, or (b) is being paid subject to a deduction therefrom on account of the income-tax payable by the company, notwithstanding the absence of any specification that the dividend would be subject to income-tax, such deduction shall in no case exceed twenty-five per cent. of the stipulated dividend. ; (v) in section 6, for the words this Act , the words and figures section 3 or section 4 shall be substituted.