Deduction in respect of certain intercorporate dividends
3[Deduction in respect of certain intercorporate dividends.
80M. 4[(1)Where the gross total income of an assessee, being a domestic company, includes any income by way of dividends from a domestic company, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such income by way of dividends of 5[an amount equal to—]
6[(a) in respect of such income by way of dividends from a company formed and registered under the Companies Act,' 1956 (1 of 1956).after the 28th day of February, 1973, and engaged exclusively or almost exclusively in the manufacture or production of any one or more of the articles or things specified in items 2 and 3, item 4 (excluding alloy, malleable and S.G. iron castings), items 7 to 15 (both inclusive), items 17 and 18 item 23 (excluding refractories) and items 24, 26, 7[27, 8[28], 29 9[, 30] and 33] in the list in she Ninth Schedule. |
the whole of such income ; |
| (b) in respect of such income by way of dividends other than the dividends referred to in clause (a) | sixty per cent of such income.]] |
9[(2) Where a company to which this section applies is entitled also to the deduction under section 80K, the deduction under sub-section (1) shall be allowed in respect of income by way of dividends referred to therein as reduced by the amount of the deduction under section 80K.]
3. This topic was originally dealt with by sec. 8SA which was inserted by the Finance Act, 1965, w.e.f. 1-4-1965. The present sec. 80M was inserted, in place of sec. 85A, by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
4. Substituted by the Finance Act, 1976, w.e.f. 1-4-1977. Original sub-section (1) was amended by the Finance Act, 1968, w.e.f. 1-4-1968 and the Finance (No. 2) Act, 1971, w.e.f. and the Finance Act. 1975, w.e f. 1-4-1976.
5. "an amount equal to sixty per cent of such income" shall be substituted for "an amount equal to—" by the Finance Act, 1984, w.e.f 1-4-1985
6. Shall be omitted by the Finance Act, 1984, w.e.f. 1-4-1985.
7. Substituted for "27 and 29" by the Finance Act, 1981, w.e.f. 1-4-1982.
8. inserted by the Finance Act, 1982, w.e.f. 1-4-1983,
9. Substituted for sub-sec. (2) and the Explanation by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972. Earlier, sub-rec. (2) and the Explanation was substituted for the original sub-section (2) by the Finance Act, 1970, w.e.f. 1-4-1971.
[As amended by the Taxation Laws (amendment) Act, 1984]