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TMI BlogTax on distributed profits of domestic companiesX X X X Extracts X X X X X X X X Extracts X X X X ..... re the 31st day of March, 2020], whether out of current or accumulated profits shall be charged to additional income-tax (hereafter referred to as tax on distributed profits) at the rate of 3[fifteen] per cent.] 15[Provided that in respect of dividend referred to in sub-clause (e) of clause (22) of section 2, this sub-section shall have effect as if for the words "fifteen per cent.", the words "thirty per cent." had been substituted;] 6[(1A) The amount referred to in sub-section (1) shall be reduced by,- 11["(i) the amount of dividend, if any, received by the domestic company during the financial year, if such dividend is received from its subsidiary and,- (a) where such subsidiary is a domestic company, the subsidiary has paid the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The principal officer of the domestic company and the company shall be liable to pay the tax on distributed profits to the credit of the Central Government within 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 the final payment of tax in respect of the amount declared, distributed or paid as dividends and no further credit therefor shall be claimed by the company or by any 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 the company or a shareholder in respect of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which a business trust has become the holder of whole of the nominal value of equity share capital of the company (excluding the equity share capital required to be held mandatorily by any other person in accordance with any law for the time being in force or any directions of Government or any regulatory authority, or equity share capital held by any Government or Government body); (b) "specified date" means the date of acquisition by the business trust of such holding as is referred to in clause (a).] 14[(8) Notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of a company, being a unit of an International Financial Services Centre, deriving income solely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of this Act and subject to the provisions of this section, in addition to the income-tax chargeable in respect of the total 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, whether out of current or accumulated profits shall be charged to additional income-tax (hereafter referred to as tax on distributed profits) at the rate of ten per cent." 3. Substituted for "twelve and one-half" by the Finance Act, 2007, w.e.f. 1-4-2007. 4. Inserted by the Special Economic Zones Act, 2005, w.e.f. 10-2-2006. 5. Words "not falling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year, if- (a) such dividend is received from its subsidiary; 8[and] (b) the subsidiary has 9[paid the tax which is payable under this section on such dividend]: (c) 10[*****] Provided that the same amount of dividend shall not be taken into account for reduction more than once;" 12. Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of October, 2014 13. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 14. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017 15. Inserted vide THE FINANCE ACT, 2018 16. Inserted vide THE FINANCE ACT, 2018 17. Substituted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-09-2019 before it was read as "out of its current income" 18. Inserted vide Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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