Whether, in the case of company where part of dividend is utilised for setting-off loss under any other head, deduction under the section is to be allowed on reduced dividend remaining after such set-off

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..... setting-off loss under any other head, deduction under the section is to be allowed on reduced dividend remaining after such set-off 1. A question has arisen as to whether in the case of a company where a part of the dividend income is utilised for setting-off loss under any other head, relief under section 80M, is to be allowed on the reduced dividend income remaining after such set-off or on t .....

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..... dend income before such set-off, subject to the overall limit imposed by section 80A(2). This is illustrated in the following example : Rs. 1. Income from dividend 20,000 2. Business loss 10,000 Total income 10,000 Deduction under section 80M at the rate of 60 per cent of Rs. 20,000 (Rs. 12,000) but subject to the limit of total income, i.e, Rs. 10,000. Circular : No. 58 [F. No. 167/24 .....

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