A domestic company eligible for section 148 includes ₹110 lakh of dividend from another domestic company in gross total income for tax year 2026–27. It distributes ₹105 lakh to its shareholders by…
Question and options
A domestic company eligible for section 148 includes ₹110 lakh of dividend from another domestic company in gross total income for tax year 2026–27. It distributes ₹105 lakh to its shareholders by the statutory deadline. What deduction is available?
₹5 lakh
₹110 lakh
₹105 lakh
Nil
Answer and explanation
Section 148(1) of the Income-tax Act, 2025 allows a domestic company a deduction of the dividends received from another domestic company, a foreign company or a business trust, up to the dividend it distributes at least one month before the due date of its return. The lower of ₹110 lakh and ₹105 lakh is ₹105 lakh.
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