Section 4A
Deduction of income-tax.
The Preference Shares (Regulation of Dividends) Act, 1960
About this Act
An Act to regulate dividends on preference shares of certain companies.
1[4A. Deduction of income-tax.-- Where the stipulated dividend in respect of a preference share of a
company--
(a) is specified to be subject to income-tax and a deduction is made therefrom on account of the income-tax payable by the company, or
(b) is being paid subject to a deduction therefrom on account of the income-tax payable by the company, notwithstanding the absence of any specification that the dividend would be subject to income-tax,
2[such deduction made by the company from any dividend declared after the 28th day of February, 1966 shall in no case exceed twenty-seven and a half per cent. of the aggregate of--
(i) the stipulated dividend, and
(ii) an amount equal to eleven per cent. of the stipulated dividend as specified in sub-section (3) of section 3.]]
(a) is specified to be subject to income-tax and a deduction is made therefrom on account of the income-tax payable by the company, or
(b) is being paid subject to a deduction therefrom on account of the income-tax payable by the company, notwithstanding the absence of any specification that the dividend would be subject to income-tax,
2[such deduction made by the company from any dividend declared after the 28th day of February, 1966 shall in no case exceed twenty-seven and a half per cent. of the aggregate of--
(i) the stipulated dividend, and
(ii) an amount equal to eleven per cent. of the stipulated dividend as specified in sub-section (3) of section 3.]]
Notes
1. Ins. by Act 10 of 1965, s. 72 (w.e.f. 1-4-1965).
2. Subs. by Act 13 of 1966, s. 52, for certain words, figures, letters and brackets (w.e.f. 1-4-1966).
2. Subs. by Act 13 of 1966, s. 52, for certain words, figures, letters and brackets (w.e.f. 1-4-1966).