4A. Deduction of income-tax
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, 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.
Amendment notes (2)
- Ins w.e.f. 1-4-1965 . Ins. by Act 10 of 1965, s. 72 (w.e.f. 1-4-1965).
- Subs w.e.f. 1-4-1966 . Subs. by Act 13 of 1966, s. 52, for certain words, figures, letters and brackets (w.e.f. 1-4-1966).