https://www.taxtmi.com/caselaws?id=64494 Rule 2(i)(b) of the First Schedule allows exclusion only of income-tax actually payable by the company under the relevant Finance Act in respect of dividend distribution. Tax deducted at source from dividends is only a collection mechanism under the Income-tax Act and is not tax payable by the company on dividend distribution. As no tax was imposed by the Finance Act on dividend distribution, the deducted amount could not be treated as deductible income-tax payable; it had to be included in the surtax computation. en-us Tue, 24 Aug 1993 00:00:00 +0530 Tue, 08 Feb 2011 11:54:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64494 Rule 2(i)(b) of the First Schedule allows exclusion only of income-tax actually payable by the company under the relevant Finance Act in respect of dividend distribution. Tax deducted at source from dividends is only a collection mechanism under the Income-tax Act and is not tax payable by the company on dividend distribution. As no tax was imposed by the Finance Act on dividend distribution, the deducted amount could not be treated as deductible income-tax payable; it had to be included in the surtax computation. Case-Laws Income Tax Tue, 24 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64494