99[Relief to certain charitable institutions or funds in respect of certain
dividends.
236A. (1) 1[Where seventy-five per cent
of the share capital of any company is throughout the previous year
beneficially held by an institution or fund established in India for a
charitable purpose the income from dividend whereof is exempt under section 11], credit shall be given to the institution
or fund against the tax, if any, payable by it, of a sum calculated in
accordance with the provisions of sub-section (2), in respect of its income
from dividends (other than dividends on preference shares) declared or
distributed during the previous year relevant to any assessment year beginning
on or after the 1st day of April, 2[1966] 3[by such a company], and
where the amount of credit so calculated exceeds the tax, if any, payable by
the said institution or fund, the excess shall be refunded.
4[(2) The amount to be
given as credit under sub-section (1) shall be a sum which bears to the amount
of the tax payable by the company under the provisions of the annual Finance
Act with reference to the relevant amount of distributions of dividends by it
the same proportion as the amount of the dividends (other than dividends on
preference shares) received by the institution or fund from the company bears
to the total amount of dividends (other than dividends on preference shares)
declared or distributed by the company during the previous year.
Explanation.—In sub-section (2)
of this section and in section 280ZB, the
expression “the relevant amount of distributions of dividends” has the meaning
assigned to it in the Finance Act of the relevant year.]]
