Dividend distribution timing determines additional tax applicability when distributions occur within the prescribed post year period. Dividends are relevant for additional income tax only if actually distributed within the said period of twelve months following the end of the previous year to which assessment relates; dividends paid after that twelve month period must be excluded. The Finance Act, 1973 effected this timing amendment, which applies from the assessment year 1974 75 onward, and income tax officers must ensure only distributions within the prescribed post year period are taken into account when proposing orders under the relevant provisions.
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.
Dividend distribution timing determines additional tax applicability when distributions occur within the prescribed post year period.
Dividends are relevant for additional income tax only if actually distributed within the said period of twelve months following the end of the previous year to which assessment relates; dividends paid after that twelve month period must be excluded. The Finance Act, 1973 effected this timing amendment, which applies from the assessment year 1974 75 onward, and income tax officers must ensure only distributions within the prescribed post year period are taken into account when proposing orders under the relevant provisions.
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