TMI BlogInsertion of new Chapter XII-DA - SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME OF DOMESTIC COMPANY FOR BUY-BACK OF SHARESX X X X Extracts X X X X X X X X Extracts X X X X ..... ly: CHAPTER XII-DA SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME OF DOMESTIC COMPANY FOR BUY-BACK OF SHARES Tax on distributed income to share holders 115QA. (1) Notwithstanding anything contained in any other provision of this Act, in addition to the income-tax chargeable in respect of the total income of a domestic company for any assessment year, any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdance with the provisions of this Act, the tax on the distributed income under sub-section (1) shall be payable by such company. (3) The principal officer of the domestic company and the company shall be liable to pay the tax to the credit of the Central Government within fourteen days from the date of payment of any consideration to the shareholder on buy-back of shares referred to in sub-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it shall be liable to pay simple interest at the rate of one per cent. for every month or part thereof on the amount of such tax for the period beginning on the date immediately after the last date on which such tax was payable and ending with the date on which the tax is actually paid. When company is deemed to be assesssee in default 115QC. If any principal officer of a domestic compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be liable to pay additional income-tax at the rate of twenty per cent. on the distributed income. The Explanation to the said section defines the expressions buy-back which means purchase by a company of its own shares in accordance with the provisions of section 77A of the Companies Act and distributed income which means the consideration paid by the company on buy-back of shares as r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay tax within the time provided, at the rate of one per cent. for every month and part thereof for such failure. The proposed new section 115QC provides that in case of failure on payment of tax, the principal officer of the company and the company shall be deemed to be an assessee in default in respect of the amount of tax payable and all provisions of the Act relating to recovery and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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