Preference Shares (Regulation of Dividends) Act, 1960
THE SCHEDULE : Modification of The Act in its Application to the Union Territory of Pondicherry
[See section 1(3)]
1. Sections 3 and 4 shall be omitted.
2. In section 4A, for the words, brackets, letters and figures
"twenty-seven and a half per cent of the aggregate of (i) of stipulated
dividend, and (ii) an amount equal to eleven per cent of the stipulated
dividend as specified in sub-section (3) of section 3", the following
shall be substituted, namely:-
"twenty-seven and a half per cent of the stipulated
dividend:
PROVIDED that in a case where the preference shares in
respect of which the dividend is declared or paid from part of the preference
share capital of a company which, in respect of greater part of its total
income, is entitled to a deduction from the tax chargeable from it under the
Income Tax Act, 1961 (43 of 1961), under a notification issued by the Central
Government under section 294A of that Act, the reference to twenty-seven and a
half per cent of the stipulated dividend shall be construed as a reference to-
(i) where the stipulated dividend in respect of such preference
share is declared or paid in respect of the previous year relevant to the
assessment year commencing on the lst day of April, 1965, the said twenty-seven
and a half per cent as reduced by forty-five per cent thereof;
(ii) where such dividend is declared or paid in respect of the
previous year relevant to the assessment year commencing on the lst day of
April, 1956, the said twenty-seven and a half per cent, as reduced by
twenty-five per cent thereof;
(iii) where such dividend is declared or paid in respect of the
previous year relevant to the assessment year commencing on the 1st day of
April, 1967, or the 1st day of April, 1968, or the 1st day of April, 1969, the
said twenty-seven and a half per cent as reduced by ten per cent thereof.
Explanation : For the removal of doubts it is hereby
declared that any reference in this section to deduction made from a dividend
on account on income-tax payable by the company does not include any amount
deducted by the company from the dividend under section 194 of the Income Tax
Act, 1961 (43 of 1961)."
3. In section 5, sub-section (2) shall be omitted.
4. Section 6 shall be omitted.
