Income Tax Act, 2025
Section 4: Ins. by Act 28 of 2016, s. 56 (w.e.f. 12017).
4. Ins. by Act 28 of 2016, s. 56 (w.e.f. 12017).
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Provided that where the determination regarding foreign company to be resident in India has been
made in the assessment proceedings relevant to any previous year, then, the provisions of this sub-section
shall also apply in respect of any other previous year, succeeding such previous year, if the foreign
company is resident in India in that previous year and the previous year ends on or before the date on
which such assessment proceeding is completed.
(2) Where, in a previous year, any benefit, exemption or relief has been claimed and granted to the
foreign company in accordance with the provisions of sub-section (1), and, subsequently, there is failure
to comply with any of the conditions specified in the notification issued under sub-section (1), then,—
(i) such benefit, exemption or relief shall be deemed to have been wrongly allowed;
(ii) the Assessing Officer may, notwithstanding anything contained in this Act, re-compute the
total income of the assessee for the said previous year and make the necessary amendment as if the
exceptions, modifications and adaptations referred to in sub-section (1) did not apply; and
(iii) the provisions of section 154 shall, so far as may be, apply thereto and the period of four
years specified in sub-section (7) of that section being reckoned from the end of the previous year in
which the failure to comply with the condition referred to in sub-section (1) takes place.
(3) Every notification issued under this section shall be laid before each House of Parliament.]
1* * * * *
115K. [Special provision for computation of income in certain cases.]—Omitted by the Finance
Act 1997 (26 of 1997), s. 39 (w.e.f. 11998).
115L. [Return of income not to be filed in certain cases.]—Omitted by the Finance
Act, 1997 (26 of 1997), s. 39 (w.e.f. 11998).
115M. [Special provision for disallowance of deductions and rebate of income-tax.]—Omitted by
the Finance Act, 1997 (26 of 1997), s. 39, (w.e.f. 11998).
115N. [Bar of proceedings in certain cases.]—Omitted by the Finance Act, 1997 (26 of 1997), s. 39,
(w.e.f. 11998).
2[CHAPTER XIID
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES
115-O. Tax on distributed profits of domestic companies.—3[(1) Notwithstanding anything
contained in any other provision 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 April, 2003, whether out of current or accumulated profits shall be
charged to additional income-tax (hereafter referred to as tax on distributed profits) 4[at the rate of fifteen
per cent.]]
5[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;]
1. Chapter XIIC consisting of sections 115K to 115N omitted by Act 26 of 1997, s. 39 (w.e.f. 11998). Earlier Chapter
XIIC was inserted by the Act 18 of 1992, s. 58 (w.e.f. 11993).
Where, in a previous year, any benefit, exemption or relief has been claimed and granted to the
foreign company in accordance with the provisions of sub-section
such benefit, exemption or relief shall be deemed to have been wrongly allowed;
the Assessing Officer may, notwithstanding anything contained in this Act, re-compute the
total income of the assessee for the said previous year and make the necessary amendment as if the
exceptions, modifications and adaptations referred to in sub-section
did not apply; and
the provisions of section 154 shall, so far as may be, apply thereto and the period of four
years specified in sub-section
of that section being reckoned from the end of the previous year in
which the failure to comply with the condition referred to in sub-section
takes place.
Every notification issued under this section shall be laid before each House of Parliament.]
1* * * * *
115K. [Special provision for computation of income in certain cases.]—Omitted by the Finance
Act 1997 (26 of 1997), s. 39 (w.e.f. 11998).
115L. [Return of income not to be filed in certain cases.]—Omitted by the Finance
Act, 1997 (26 of 1997), s. 39 (w.e.f. 11998).
115M. [Special provision for disallowance of deductions and rebate of income-tax.]—Omitted by
the Finance Act, 1997 (26 of 1997), s. 39, (w.e.f. 11998).
115N. [Bar of proceedings in certain cases.]—Omitted by the Finance Act, 1997 (26 of 1997), s. 39,
(w.e.f. 11998).
2[CHAPTER XIID
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES
115-O. Tax on distributed profits of domestic companies.—3[
Notwithstanding anything
contained in any other provision 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 April, 2003, whether out of current or accumulated profits shall be
charged to additional income-tax (hereafter referred to as tax on distributed profits) 4[at the rate of fifteen
per cent.]]
5[Provided that in respect of dividend referred to in sub-clause
of clause
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;]
1. Chapter XIIC consisting of sections 115K to 115N omitted by Act 26 of 1997, s. 39 (w.e.f. 11998). Earlier Chapter
XIIC was inserted by the Act 18 of 1992, s. 58 (w.e.f. 11993).