Section 24 - Amendment of section 115-O. - Finance Act, 2008

Amendment of section 115-O. 24. In section 115-O of the Income-tax Act, after sub-section (1), the following sub-section shall be inserted, namely:— ''(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 reduction more than once. Explanation .-For the purposes of this sub-section, a company shall be a subsidiary of another company, if such other company holds more than half in nominal value of the equity share capital of the company.".