Relief to shareholders in respect of agricultural income-tax attributable to dividends
CHAPTER XVIII
RELIEF RESPECTING TAX ON DIVIDENDS IN CERTAIN CASES
Relief to shareholders in respect of agricultural income-tax attributable to dividends
235. Where a company pays to a shareholder any dividend out of its profits and gains which is assessed to agricultural income-tax by any State Government, the shareholder shall be entitled to a reduction from the tax payable by him under this Act, of a sum equal to—
(a) that proportion of the agricultural income-tax (including super-tax, if any) paid by the company as the amount of the dividend attributable to the profits of the company assessed to agricultural income-tax bears to its total profits assessed to agricultural income-tax, reduced by the amount of refund, if any, allowed to him by the State Government; or
(b) where the shareholder—
(i) is not a company, the amount of income-tax (but not super-tax) payable by him under this Act, and
(ii) is a company, twenty per cent,
on that portion of the dividend which is attributable to the profits of the company assessed to agricultural income-tax;
whichever is less.
[As amended by the Finance Act, 1962]