Deduction in respect of certain inter-corporate dividends
16[Deduction in respect of certain inter-corporate dividends.
80M. 17[G) 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 18[an amount equal to sixty per cent of such income.]
(a) and (b) 19[* * *]
20[(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.]]
16. This topic was originally dealt with by section 85A which was inserted by the Finance Act, 1965, w.e.f. 1-4-1965. The present section 80M was inserted, in place of section 85A which was deleted, by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
17. Substituted by the Finance Act, 1976, w.e.f. 1-4-1977. Original sub-section (1) was first amended by the Finance Act, 1968, w.e.f. 1-4-1968, then by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972 and then by the Finance Act, 1975, w.e.f. 1-4-1976.
18. Substituted for "an amount equal to—" by the Finance Act, 1984, w.e.f. 1-4-1985.
19. Omitted by the Finance Act, 1984, w.e.f. 1-4-1985. Omitted clauses (a) and (b) read asunder :
| "(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, 1975, 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, *[27, †[28], 29, †[30] and 33] in the list in the 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." | |
| *Substituted for "27 and 29" by the Finance Act, 1981, w.e.f. 1-4-1982. | |||
| †Inserted by the Finance Act, 1982, w.e.f. 1-4-1963. |
20. Substituted for sub-section (2) and the Explanation by the Finance (No. 2) Act, 1971, w.e.f 1-4-1972. Earlier, sub-section (2) and the Explanation was substituted for the original sub section (2) by the Finance Act, 1970, w.e.f. 1-4-1971.