Whether, in the case of company where part of dividend is utilised for setting-off loss under any other head, deduction under the section is to be allowed on reduced dividend remaining after such set-off

Calculate Section 80M Deduction on Total Dividend Income Before Offsetting Losses; Aligns with Gross Total Income Principle.

In cases where a company uses part of its dividend income to offset losses under other income heads, the deduction under section 80M should be calculated on the total dividend income before such set-off. This approach aligns with the principle that dividend income contributes to the gross total income, regardless of any losses included in the computation of total income. Therefore, relief under section 80M is granted on the full dividend income, subject to the overall limit specified by section 80A(2), as demonstrated in the provided example.