Income Tax Act, 2025
Section 4: Subs. by Act 25 of 2014, s. 37, for clause (ii) (w.e.f. 12015).
4. Subs. by Act 25 of 2014, s. 37, for clause (ii) (w.e.f. 12015).
475
1[115BBD. Tax on certain dividends received from foreign companies.—(1) Where the total
income of an assessee, being an Indian company, 2*** includes any income by way of dividends declared,
distributed or paid by a specified foreign company, the income-tax payable shall be the aggregate of—
(a) the amount of income-tax calculated on the income by way of such dividends, at the rate of
fifteen per cent; and
(b) the amount of income-tax with which the assessee would have been chargeable had its total
income been reduced by the aforesaid income by way of dividends.
(2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or
allowance shall be allowed to the assessee under any provision of this Act in computing its income by
way of dividends referred to in sub-section (1).
(3) In this section,—
(i) “dividends” shall have the same meaning as is given to “dividend” in clause (22) of
section 2 but shall not include sub-clause (e) thereof;
(ii) “specified foreign company” means a foreign company in which the Indian company holds
twenty-six per cent or more in nominal value of the equity share capital of the company.]
3[115BBDA. Tax on certain dividends received from domestic companies.—(1) Notwithstanding
anything contained in this Act, where the total income of 4[a specified assessee,] resident in India,
includes any income in aggregate exceeding ten lakh rupees, by way of dividends declared, distributed or
paid by a domestic company or companies, the income-tax payable shall be the aggregate of—
(a) the amount of income-tax calculated on the income by way of such dividends in aggregate
exceeding ten lakh rupees, at the rate of ten per cent; and
(b) the amount of income-tax with which the assessee would have been chargeable had the total
income of the assessee been reduced by the amount of income by way of dividends.
(2) No deduction in respect of any expenditure or allowance or set off of loss shall be allowed to the
assessee under any provision of this Act in computing the income by way of dividends referred to in
clause (a) of sub-section (1).
(3) In this section, “dividends” shall have the same meaning as is given to “dividend” in clause (22)
of section 2 but shall not include sub-clause (e) thereof.]
5[Explanation.—For the purposes of this section,—
(a) “dividend” shall have the meaning assigned to it in clause (22) of section 2 but shall not
include sub-clause (e) thereof;
(w.e.f. 12015).
475
1[115BBD. Tax on certain dividends received from foreign companies.—
Where the total
income of an assessee, being an Indian company, 2*** includes any income by way of dividends declared,
distributed or paid by a specified foreign company, the income-tax payable shall be the aggregate of—
the amount of income-tax calculated on the income by way of such dividends, at the rate of
fifteen per cent; and
the amount of income-tax with which the assessee would have been chargeable had its total
income been reduced by the aforesaid income by way of dividends.
Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or
allowance shall be allowed to the assessee under any provision of this Act in computing its income by
way of dividends referred to in sub-section
In this section,—
“dividends” shall have the same meaning as is given to “dividend” in clause
of
section 2 but shall not include sub-clause
thereof;
“specified foreign company” means a foreign company in which the Indian company holds
twenty-six per cent or more in nominal value of the equity share capital of the company.]
3[115BBDA. Tax on certain dividends received from domestic companies.—
Notwithstanding
anything contained in this Act, where the total income of 4[a specified assessee,] resident in India,
includes any income in aggregate exceeding ten lakh rupees, by way of dividends declared, distributed or
paid by a domestic company or companies, the income-tax payable shall be the aggregate of—
the amount of income-tax calculated on the income by way of such dividends in aggregate
exceeding ten lakh rupees, at the rate of ten per cent; and
the amount of income-tax with which the assessee would have been chargeable had the total
income of the assessee been reduced by the amount of income by way of dividends.
No deduction in respect of any expenditure or allowance or set off of loss shall be allowed to the
assessee under any provision of this Act in computing the income by way of dividends referred to in
clause
of sub-section
In this section, “dividends” shall have the same meaning as is given to “dividend” in clause
of section 2 but shall not include sub-clause
thereof.]
5[Explanation.—For the purposes of this section,—
“dividend” shall have the meaning assigned to it in clause
of section 2 but shall not
include sub-clause
thereof;