Taxation of dividends received from United Kingdom

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..... (ii) F.No. 491/1/18/75-FTD dt. 29-1-76. It was explained in these instructions that for purposes of section 5(1)(c) of the Income-tax Act, 1961, the gross amount of the dividends paid by the U.K. companies after 5-4-1965 (wrongly stated as 5-4-1966), should be taken as the income of the Indian shareholder and not the net amount. 2. The Board had occasion to re-examine the above questi .....

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..... e tax at the source. That being so, it is the income in respect of which income-tax has been paid by deduction or otherwise in accordance with the law in force in the country in which the income accrued. If it is again charged to tax under the Indian Income-tax Act, it would become a doubly-taxed income and one of the requirements of section 49D would be satisfied. The above decision of the Suprem .....

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..... ividends in U.K. underwent a change through U.K. Finance Act, 1965, w.e.f. 6-4-1965. The amended provision contained in section 47 of the U.K. Finance Act, 1965, states that a company would pay corporation tax only in respect of income which was not distributed either by way of dividends or otherwise and it would further pay income-tax on all dividends and other distributions made by it. Section 4 .....

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