Section 85A - Omitted

Deduction on intercorporate dividends allowed tax relief for corporate dividend income, but the statutory provision was later omitted.

Section 85A provided a deduction from a company's income tax for dividend income received from Indian companies (or those with prescribed dividend arrangements), calculated by reference to tax at the average rate on that dividend income but limited so that only the portion exceeding a statutory threshold was deductible; a lower threshold applied where prescribed arrangements were absent and for companies mainly engaged in certain activities, the latter defined by a majority-of-income deeming rule. The provision was later omitted by amendment.