Dividends.194. The principal officer of an Indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends (including dividends on preference shares) within India, shall, before making any payment by any mode in respect of any dividend or before making any distribution or payment to a shareholder, who is resident in India, of any dividend within the meaning of sub-clause (a) or sub-clause (b) or sub-clause (c) or sub-clause (d) or sub-clause (e) 65[or sub-clause (f)] of clause (22) of section 2, deduct from the amount of such dividend, income-tax at the rate of ten per cent :Provided that no such deduction shall be made in the case of a shareholder, being an individual, if-
(a)
-
the dividend is paid by the company by any mode other than cash; and
(b)
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the amount of such dividend or, as the case may be, the aggregate of the amounts of such dividend distributed or paid or likely to be distributed or paid during the financial year by the company to the shareholder, does not exceed 66[ten] thousand rupees:
Provided further that the provisions of this section shall not apply to such income credited or paid to-
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