Taxation of dividends received from United Kingdom

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....        (i) F.No. 2/1/68-ITAI dt. 7-3-68.             (ii) F.No. 491/1/18/75-FTD dt. 29-1-76. It was explained in these instructions that for purposes of section 5(1)(c) of the Income-tax Act, 1961, the gross amount of the dividends paid by the U.K. companies after 5-4-1965 (wrongly stated as 5-4-1966),....

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....sessee. The income in the form of dividends has already been subjected to tax. Dividends which are styled as franked income have, thus, borne tax at the source. That being so, it is the income in respect of which income-tax has been paid by deduction or otherwise in accordance with the law in force in the country in which the income accrued. If it is again charged to tax under the Indian Income-ta....

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....ingdom would be taxed in India on gross basis would cover the cases of Kerala Charge as well. 4. The provisions governing the taxation of dividends in U.K. underwent a change through U.K. Finance Act, 1965, w.e.f. 6-4-1965. The amended provision contained in section 47 of the U.K. Finance Act, 1965, states that a company would pay corporation tax only in respect of income which was not distribu....