Insertion of new section 115BBD- Tax on certain dividends received from foreign companies

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..... reign companies '115BBD. (1) Where the total income of an assessee, being an Indian company, for the previous year relevant to the assessment year beginning on the 1st day of April, 2012 includes any income by way of dividends declared, distributed or paid by a subsidiary foreign company, the income-tax payable shall be the aggregate of- (a) the amount of income-tax calculated .....

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..... equity share capital of the company.'. - Clause 16 of the Bill seeks to insert a new section 115BBD in the Income-tax Act relating to tax on certain dividends received from foreign companies. Under the existing provisions of the Income-tax Act, dividend received from foreign companies is taxable in the hands of the recipient at his applicable marginal rate of tax. Therefore, in case of .....

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..... section (2) of the aforesaid new section provides that no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of the Income-tax Act in computing its income by way of dividends. Sub-section (3) of the aforesaid new section seeks to define the expressions dividends and subsidiary foreign company . This amendment will take effect from 1st .....

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