Dividend received from foreign company be avaialble for set off against business losses, Income Tax

[SANJIV KOTHARI]

Dividend received from foreign subsidiary by Indian holding compant is taxable @15%. Please let me know if holding company has business losses more than dividend received . I would like to know can dividend be available for set off against business losses of current year and no tax is chargeable if net income of assessee after set off is nil or negative.

Can carry forward business losses also be set off against dividend received from foreign company?

Posts / Replies

[Rama Krishana]

In view of Provision of Section 70 and Section 71 of the Income Tax Act, 1961, there is no such restriction of intra head or inter head adjustment. Mere fact that such dividend is taxable at special rate, would not disable the assesee for being set off with other income as per the provisions.