§ 148
Chapter VIII — Deductions To Be Made In Computing Total Income
Deduction in respect of certain inter-corporate dividends
Income-tax Act, 2025
Domestic companies can claim a deduction on certain inter-corporate dividends received from other domestic companies, foreign companies, or business trusts. The deduction is limited to the amount of dividend distributed by the company at least one month before the income tax return filing deadline.
- The deduction applies to the tax year in which the dividend is distributed.
📜 Official text of the section +
148. (1) If the gross total income of a domestic company in any tax year includes
any income by way of dividends from—
( a) any other domestic company; or
( b) a foreign company; or
( c) a business trust,
such domestic company shall be allowed a deduction of an amount equal to so much
of the income by way of dividends received from the person mentioned in clause
(a) or (b) or (c) as does not exceed the amount of dividend distributed by it at least
one month before the due date for filing the return of income under section 263(1).
(2) Where any deduction, in respect of the amount of dividend distributed by the
domestic company, has been allowed under sub-section (1) in any tax year, no
deduction shall be allowed in respect of such amount in any other tax year.
Deduction in respect of income of co-operative societies.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.
Related sections
§ 122Deductions to be made in computing total income§ 123An individual or a Hindu undivided family, shall be allowed a deduction§ 124Section 124§ 125Deduction in respect of contribution to Agnipath Scheme§ 126Government along with interest on both these contributions are held. Deduction in respect of health insurance premia§ 127Section 127