Tax on distributed profits: gross-up mechanism requires dividends to be increased so post-tax amount equals net distributed profits. Amendment requires that, for determining tax on distributed profits, any dividend amount reduced to arrive at net distributed profits must be increased to an amount which, after reduction of the tax at the rate specified in sub-section (1), equals the net distributed profits, thereby prescribing a gross-up computation for the taxable dividend base.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax on distributed profits: gross-up mechanism requires dividends to be increased so post-tax amount equals net distributed profits.
Amendment requires that, for determining tax on distributed profits, any dividend amount reduced to arrive at net distributed profits must be increased to an amount which, after reduction of the tax at the rate specified in sub-section (1), equals the net distributed profits, thereby prescribing a gross-up computation for the taxable dividend base.
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