Amendment of section 115-O

Section 24 of the Finance Act, 2008 deals with amendment of section 115-O. Amendment of section 115-O. 24. In section 115-O of the Income-tax Act, after sub-section (1), the following sub-section shall be inserted, namely:— "(1A) The amount referred to in sub-section (1) shall be reduced by the amount of dividend, if any, received by the domestic company during the financi

Amendment of section 115-O.

24. In section 115-O of the Income-tax Act, after sub-section (1), the following sub-section shall be inserted, namely:—

"(1A) The amount referred to in sub-section (1) shall be reduced by the amount of dividend, if any, received by the domestic company during the financial year, if—

(a ) such dividend is received from its subsidiary;

(b ) the subsidiary has paid tax under this section on such dividend; and

(c ) the domestic company is not a subsidiary of any other company:

Provided that the same amount of dividend shall not be taken into account for reduction more than once.

Explanation.—For the purposes of this sub-section, a company shall be a subsidiary of another company, if such other company holds more than half in nominal value of the equity share capital of the company.".

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Section 24, The Finance Act, 2008.