11. Tax On Distributed Profits Of Domestic Companies [Sec. 115-O ]

(1) Notwithstanding anything contained in any other provision of this Act and subject to the provisions of this section, in addition to the income-tax chargeable in respect of the total income of a domestic company for any assessment year, any amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise) on or after the 1-4-2003, whether out of current or accumulated profits shall be charged to additional income-tax (hereafter referred to as tax on distributed profits) at the rate of 12.5% + surcharge @ 10% ÷ education cess 2% = 14.025%. [AY 2008-09 15% +surcharge @ 10% + education cess 3% = 16.995%.]


(2) Notwithstanding that no income-tax is payable by a domestic company on its total income computed in accordance with the provisions of this Act, the tax on distributed profits shall be payable by such company.


(3) The principal officer of the domestic company and the company shall be liable to pay the tax on distributed profits to the credit of the Central Government within 14 days from the date of—


(a) declaration of any dividend; or
(b) distribution of any dividend; or
(c) payment of any dividend,

whichever is earliest.

 

(4) The tax on distributed profits so paid by the company shall be treated as the final payment of tax in respect of the amount declared, distributed or paid as dividends and no further credit therefore shall be claimed by the company or by any other person in respect of the amount of tax so paid.


(5) No deduction under any other provision of this Act shall be allowed to the company or a shareholder in respect of the amount which has been charged to tax or the tax thereon.


(6) Notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of an undertaking or enterprise

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AMOUNTS EXPRESSLY ALLOWED AS DEDUCTION

EC. 40A : AMOUNT EXPRESSLY DISALLOWED AS DEDUCTION

SEC. 35 : EXPENDITURE ON SCIENTIFIC RESEARCH 

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RESTRICTION ON DEDUCTIONS

[SECTION 115JB]  MINIMUM ALTERNATIVE TAX (MAT)

CARRY FORWARD AND SET-OFF LOSES

TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES [ Sec. 115-O ]

 
 
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