Income Tax Act, 1967.
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Dividends. |
396.—(1) Where, under section 456, a company is entitled to deduct income tax from any dividend, tax shall not in any case be deducted at a rate exceeding the rate of the income tax as reduced by any relief from that tax given under this Chapter or section 7 of the Finance (Miscellaneous Provisions) Act, 1956 , or section 32 of the Finance Act, 1960 , and the provisions of section 457 shall apply accordingly, with any necessary modifications. | |
(2) The rate of income tax at which any repayment of income tax for any year of assessment falls to be made shall be subject to such adjustments as may be proper in cases in which relief is given under or by virtue of this Chapter or section 7 of the Finance (Miscellaneous Provisions) Act, 1956 , or section 32 of the Finance Act, 1960 . | ||
(3) No relief from income tax shall be granted under this Chapter in respect of any income the income tax on which a company is, otherwise than under section 456, entitled to charge against any other person or to deduct, retain or satisfy out of any payment to any other person. | ||
(4) Where, by virtue of subsection (1), income tax is deducted from a dividend at a reduced rate, the amount to be included in respect of the dividend in any return for the purpose of sur-tax shall be an amount which bears the same proportion to the amount of the dividend as the rate of income tax deducted therefrom bears to the rate which would have been authorised to be deducted if this section had not been enacted. |