Tax on foreign subsidiary dividends: introduces separate tax on such dividends and disallows deductions on that income.

Indian companies receiving dividends from a subsidiary foreign company will have income-tax computed as the aggregate of a separate tax on such dividends at a specified concessional rate and the tax on the remaining total income after excluding those dividends; no deduction or allowance is permitted in computing the dividend income, and the terms "dividends" and "subsidiary foreign company" are specifically defined.

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