Levy of an extra amount of tax on the amount of dividends on equity capital declared or distributed during the previous year by certain companies

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..... for industrial development and growth, Finance Act, 1964 for the first time provided for fiscal discincentives by levy of an extra amount of tax on the amount of dividends on equity capital declared or distributed during the previous year by certain companies. This was continued by the Finance Acts, 1965 to 1968, though not in the same form. 2. The mode of computing the amount on which this extr .....

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..... ends whether on equity or preference shares capital for the first during the previous year relevant to the A.Y.1964-65, or any one of the four previous years immediately preceding such previous year. In such cases the extra amount of super-tax at 7.5% was payable only on that amount of super-tax at 7.5% was payable only on that amount of the equity dividends which was in excess of 10% of the paid .....

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..... of dividends" means the aggregate amount of: i)that part of the amount of equity dividends declared or distributed of the companies during the previous years relevant to the A.Y's 1964-65 1965-66 w.r.t. which it was chargeable to tax at the rate of 7.5% thereof by reduction of t he rebate of tax admissible to it, respectively, under the provisions of the Finance Acts, 1964 1965, but could no .....

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..... ss distribution of past years on which tax at the rate of 7.5% could not be charged due to insufficiency of the total income of the company for those years. 3. The above detailed position may be brought to the notice of the assessing officers for having carefully followed in pending assessments for the relevant years. - Circular - Trade Notice - Public Notice - Instructions - Office orders Ta .....

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