An eligible domestic company includes ₹110 lakh of dividends from domestic companies and ₹30 lakh of eligible dividends from a foreign company in its gross total income for tax year 2026–27. It…

Section 148 of the Income-tax Act, 2025 allows a domestic company a deduction for dividends received from another domestic company, a foreign company or a business trust, but only up to the dividend it distributes at least one month before the return due date under section 263(1). Eligible dividends total ₹140 lakh and ₹130 lakh is distributed, so the deduction is ₹130 lakh; ₹110 lakh wrongly leaves out the foreign-company dividend.