Deduction in respect of certain inter-corporate dividends
7 Deduction in respect of certain inter-corporate dividends.
80M. 8[(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 9[an amount equal to sixty per cent of such income.]
(a) and (b) 10[* * *]
11[(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.]]
THE FOLLOWING NEW section 80M SHALL BE SUBSTITUTED FOR THE EXISTING SECTION 80M BY THE FINANCE ACT, 1986, W.E.F. 1-4-1987 :
Deduction in respect of certain inter-corporate dividends.
80M. 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 be allowed, in computing the total income of the assessee, a deduction from such income by way of dividends of an amount equal to sixty per cent of such income.
7. Topic of section 80M was originally dealt with by section 85A which was inserted by the Finance Act, 1965, w.e.f. 1-4-1965, The section was inserted, in place of section 85 A which was deleted, by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
8. 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.
9. Substituted for “an amount equal to— by the Finance Act, 1984, w.e.f. 1-4-1985.
10. Omitted by Finance Act, 1984, w.e.f. 1-4-1985. Earlier, clauses (a) and (b) were amended by the Finance Act, 1981, w.e.f. 1-4-1982 and the Finance Act, 1982, w.e.f. 1-4-1983.
11. Substituted for sub-section (2) and Explanation by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972. Earlier, sub-section (2) and Explanation was substituted for original sub-section (2) by the Finance Act, 1970, w.e.f. 1-4-1971.
[AS AMENDED BY THE FINANCE ACT, 1986]