Tax on distributed income to shareholders

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....ng contained in any other provision of this Act, in addition to the income-tax chargeable in respect of the total income of a domestic company for any assessment year, any amount of distributed income by the company on buy-back of shares 4[****] from a shareholder shall be charged to tax and such company shall be liable to pay additional income-tax at the rate of twenty per cent on the distributed....

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....ing in force relating to companies]; (ii) "distributed income" means the consideration paid by the company on buy-back of shares as reduced by 3[the amount, which was received by the company for issue of such shares, determined in the manner as may be prescribed]. (2) Notwithstanding that no income-tax is payable by a domestic company on its total income computed in accordance with the provisio....

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....under sub-section (1) or the tax thereon.]     **************** NOTES:- 1. Inserted vide Section 31 of the Finance Act 2013 w.e.f. 01-06-2013 2. Substituted vide Section 58 of the Finance Act 2016 w.e.f. 01-06-2016 before it was read as, "section 77A of the Companies Act, 1956 (1 of 1956)" 3. Substituted vide Section 58 of the Finance Act 2016 w.e.....