Source: ICAI MCQ BOOKLET & RTP NOV 21
MCQ no 32.2
Deduction u/sec 80M as per RTP NOV’21 is 13lakhs & as per updated ICAI MCQ Booklet ans is 7lakhs.
Pls guide as to why the ans is 7lakhs?
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Plain reading of Section 80 M it states that amount of deduction shall be lower of amount received or dividend paid in the given case it’s 7 lakh so it’s 7 lakh
And foreign company dividend shall be taxable at 15% u/s 115BBD if the shares vc are min 26%
But dividend paid is 6 lakhs + 7 lakhs= 13lakhs, though 6 lakhs ( dividend paid) pertains to prior year but it has been paid in the current year.
And, even if we do not consider dividend taxable u/s 115BBD, then dividend received= 920000( 2 lakhs+ 4 lakhs+ 3.20 lakhs), being lower of the two, should have been the answer.
6 lakh toh prior ka hai and it has received more than 7 lakh dividend toh is saal ka lower toh 7 lakhs hua toh 7 lakhs ka deduction milega right as per the reading of the section