PREFERENCE SHARES (REGULATION OF DIVIDENDS) ACT, 1960

Section - 4A - Deduction of income-tax

Deduction of income-tax.

4A. Where the stipulated dividend in respect of a preference share of a company-

(a) - is specified to be subject to income-tax and a deduction is made therefrom on account of the income-tax payable by the company, or
(b) - is being paid subject to a deduction therefrom on account of the income-tax payable by the company, notwithstanding the absence of any specification that the dividend would be subject to income-tax,
such deduction made by the company from any dividend declared after the 28th day of February, 1966 shall in no case exceed twenty-seven and a half per cent of the aggregate of-

(i) - the stipulated dividend, and
(ii) - .... To read the full section download the app from Google Play store