Discuss provisions under section 115BBD Vs. 115BBDA with reference to taxation of foreign dividends.

Section 115BBD of Income Tax Act, 1961: Where the total income of an assessee, being an Indian company, includes any income by way of dividend declared, distributed or paid by a specified foreign company, the income-tax payable shall be the aggregate of: The amount of income-tax calculated on the income by way of such dividends, at the rate of fifteen percent; and The amount of income tax with which the assessee would have been chargeable had its total income reduced by the aforesaid income by way of dividends. Notes: The aforesaid amount would be increased by the applicable surcharge and cess. Deduction in respect of any expenditure or allowance shall not be allowed to the assessee under any provision of this Act in computing its income by way of aforesaid dividends. Above provisions are not applicable to deemed dividend u/s 2(22)(e). Specified foreign company means a foreign company in which the Indian company holds 26% or more in nominal value of the equity share capital of the company. Section 115BBDA of Income Tax Act, 1961: Notwithstanding anything contained in this Act, where the total income of an assessee, being a Resident individual, Hindu Undivided Family or a Firm, or any person (not being a domestic company, or a fund/ institution/trust/university/educational institution/hospital/other medical institution referred to in section 10(23C), or a trust/institution registered u/s 12A / 12AA), includes any income in aggregate exceeding 10 lakh rupees, by way of dividend declared, distributed or paid by a domestic company or companies, the income tax payable shall be the aggregate of: The amount of income tax calculated on the income by way of such dividends in aggregate exceeding 10 lakhs rupees, at the rate of 10% and The amount of income tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the amount by way of dividends. Notes: No deduction in respect of any expenditure or allowance or set-off of loss shall be allowed to the assessee under any provision of this Act in computing the income by way of dividends referred to in clause (a) of sub-section (1). The aforesaid amount would be increased by the applicable surcharge and cess. Above provisions are not applicable to deemed dividend u/s 2(22)(e).