Amendment of section 115BBD.
27. In section 115BBD of the Income-tax Act, after subsection (3), the following sub-section shall be inserted with effect from the 1st day of April, 2023, namely:––
“(4) The provisions of this section shall not apply to any assessment year beginning on or after the 1st day of April, 2023.”.
Notes on Clauses:
Clause 27 seeks to amend section 115BBD of the Income-tax Act relating to tax on certain dividends received from foreign companies.
The said section, inter-alia, provides that in case of an Indian company whose total income includes any income by way of dividends declared, distributed or paid by a foreign company, in which the said Indian company holds twenty-six per cent. or more in nominal value of the equity share capital, such dividend income shall be taxed at the rate of fifteen per cent.
It is proposed to insert a new sub-section (4) to provide that the provisions of this section shall not apply to any assessment year beginning on or after the 1st day of April, 2023.
This amendment will take effect from 1st April, 2023 and will, accordingly, apply in relation to the assessment year 2023-2024 and subsequent assessment years.
