रजिस्ट्री सं० डी- (डी) -72
REGISTERED No. D-(D) -72
भारत का राजपत्र
The Gazette of India
असाधारण
EXTRAORDINARY
भाग II-खण्ड 1
PART II Section 1
प्राधिकार से प्रकाशित
PUBLISHED BY AUTHORITY
सं० 31]
नई दिल्ली, मुधबार , मई 21, 1975/ वैशाख 31 , 1897
No. 31] NEW DELHI, WEDNESDAY, MAY 21 , 1975 /VAISAKHA 31, 1897
इस भाग में भिन्न पृष्ठ संख्या की जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सकें ।
Separate paging is given to this Part in order that it may be filed as a separate compilation .
MINISTRY OF LAW , JUSTICE AND COMPANY AFFAIRS
(Legislative Department)
New Delhi , the 21st May , 1975 / Vaisakha 31 , 1897 (Saka )
The following Act of Parliament received the assent of the President on the 21st May, 1975, and is hereby published for general information: --
THE COMPANIES ( TEMPORARY RESTRICTIONS ON DIVIDENDS ) AMENDMENTS ACT , 1975
No. 28 OF 1975
[21st May , 1975 ]
An Act to amend the Companies ( Temporary Restrictions on Divi- dends) Act , 1974 .
BE it enacted by Parliament in the Twenty -sixth Year of the Republic of India as follows : -
1. (1 ) This Act may be called the Companies ( Temporary Restrictions on Dividends ) Amendment Act , 1975 .
Shorttitle and com- mence- ment.
(2)It shall be deemed to have come into force on the 1st day of March, 1975.
35 of 1974 .
Amend- ment of section 4.
2. In the Companies (Temporary Restrictions on Dividends ) Act , 1974 (hereinafter referred to as the principal Act) , in section 4 , in sub - section (1), for the words "For a period of two years ", the words " Save as other- wise provided in section 5A, for a period of two years " shall be substituted .
Amend- ment of section 5 .
3. In section 5 of the principal Act , for the words " For a period of two years" , the words " Save as otherwise provided in section 5A , for a period of two years " shall be substituted .
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200
[PART II-
4. After section 5 of the principal Act , the following section shall be inserted , namely : --
Insertion of new section 5A .
'5A. ( 1) On and from the commencement of the Companies (Temporary Restrictions on Dividends) Amendment Act, 1975 , and subject to the provisions of sub -section (2 ) , it shall be lawful for a company to which this Act applies to declare , out of its profits for any financial year, dividend exceeding , in the aggregate, its distributable profits for that financial year .
Restric- tions under which dividends in excess ofdistri. butable profits maybe declared.
(2) Where , after the commencement of the Companies ( Tempo- rary Restrictions on Dividends ) Amendment Act , 1975 , a company to which this Act applies declares dividend for any financial year exceeding, in the aggregate , its distributable profits for that financial year , such company shall not , for a period of two years from the ap- pointed day , make payment of so much of such dividend as exceeds its distributable profits for that financial year and, on the expiry of the said period , so much of the dividend as is in excess of the dis- tributable profits of the company for the financial year aforesaid ( the amount in excess as aforesaid being hereinafter referred to as the "deferred dividend " ) , shall be payable , together with interest due thereon at the rate of eight per cent . per annum , in two equal annual instalments, the first of which shall become due and payable on the date on which the said period of two years expires .
(3) The provisions of sections 4 and 5 shall , except to the extent they are inconsistent with the provisions of this section, apply to a dividend declared under this section .
1of 1956 .
(4) No dividend shall be declared under sub - section ( 1 ) except after complying with the provisions of sub - section ( 2A ) of section 205 of the Companies Act, 1956.
(5) The provisions of section. 205A of the Companies Act , 1956 , shall not apply to any instalment of deferred dividend :
1 of 1956 .
Provided that if the whole or any part of an instalment of de- ferred dividend remains unpaid after the expiry of a period of thirty days from the date on which such instalment becomes due and pay- able , the provisions of the said section 205A shall applyto the amount so remaining unpaid .
43 of 1961 .
(6) Where , after the commencement of the Companies (Tem- porary Restrictions on Dividends ) Amendment Act, 1975 , a company to which this Act applies declares dividend for any financial year exceeding in the aggregate , its distributable profits for that financial year , the provisions of the Income - tax Act , 1961 , shall subject to the provisions of sub- section ( 10 ) , apply in relation to the whole of the dividend so declared , as they apply in relation to dividend which is declared but payment of no part of which is deferred.
(7) Where, after the commencement of the Companies (Tem- porary Restrictions on Dividends) Amendment Act , 1975 , a company to which this Act applies declares dividend for a financial year ex- ceeding , in the aggregate , its distributable profits for that financial SEC 1 ]
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201
year, the company shall post, within forty- two days from the date of such declaration, to every shareholder entitled to the payment of the dividend, a warrant authorising the payment of the dividend so de- clared, but the said warrant shall be so prepared as to authorise
( a) immediate payment of so much of the dividend as does not exceed the distributable profits of the company for the fin- ancial year aforesaid ( hereinafter referred to as the " immediate dividend" ) , and
(b) the payment of the deferred dividend on the respective dates on which each instalment of the deferred dividend becomes due and payable .
(8) Income- tax deducted under sub - section ( 6) from dividends shall be so apportioned between the immediate dividend and each in- stalment of the deferred dividend as to ensure that the income - tax deducted from the immediate dividend and each instalment of the deferred dividend bears the same proportion to the gross amount of the immediate dividend and the gross amount of each instalment of the deferred dividend as the total amount of the income - tax so de ducted bears to the gross amount of the total dividend declared by the company.
(9) Every warrant issued under sub - section ( 7) shall be in such form and contain such particulars as may be specified by rules made under this Act .
13 of 1961 .
(10) Notwithstanding anything to the contrary contained in the Income- tax Act, 1961 , the Income- tax Officer shall not , for the purposes of that Act , treat an assessee to whom any instalment of deferred dividend is payable as in default in respect of that part of income - tax which is due in respect of such instalment of deferred dividend , as reduced by the income- tax , if any , deducted at source from such in- stalment, and shall continue to treat the assessee as not in default in respect of the said part of the income- tax , as so reduced , until the expiry of thirty -five days from the date on which such instalment becomes due and payable to the assessee or the warrant in respect of such instalment is transferred by the assessee to any person, whichever is earlier , and no interest shall be chargeable under sub- section (2 ) of section 220 of that Act in respect of the said part of the income- tax, as so reduced , for the period during which the assessee is treated as not in default .
Explanation . In this sub - section , " assessee " has the meaning assigned to it in clause (7) of section 2 of the Income - tax Act , 1961. ' .
43 of 1961 .
K. K. SUNDARAM, Secy . to the Govt. of India.
PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD , NEW DELILI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS , DELHI , 1975