Section 115BBD - Tax on certain dividends received from foreign companies - Income-tax Act, 1961

1 [115BBD. Tax on certain dividends received from foreign companies.- (1) Where the total income of an assessee, being an Indian company, 4 [ **** ] 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. ] 5 [ (4) The provisions of this section shall not apply to any assessment year beginning on or after the 1st day of April, 2023. ] ****************** NOTES:- 1. Inserted vide Section 17 of the Finance Act, 2011 w.e.f. 01-04-2012 2. Inserted vide Section 46 of the Finance Act, 2012 w.e.f. 01-04-2013 3. Inserted vide Section 29 of the Finance Act, 2013 w.e.f. 01-04-2014 4. Omitted vide Section 38 of the Finance (No. 2) Act 2014 w.e.f. 01-04-2015 before it was read as, for the previous year relevant to the assessment year beginning on the 1st day of April, 2012, 2 [ or beginning on the 1st day of April, 2013 ] 3 [ or beginning on the 1st day of April, 2014 ] 5. Inserted vide Section 27 of the Finance Act, 2022 w.e.f. 01-04-2023