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[Cites 0, Cited by 0] [Section 1C] [Entire Act]

Union of India - Subsection

Section 1C(2) in The Wealth-Tax Rules, 1957

(2)Where no dividend has been paid in respect of an unquoted preference share by any company continuously for not less than three accounting years ending on the valuation date or in a case where the accounting year of that company does not end on the valuation date, for not less than three continues accounting years ending on a date immediately before the valuation date, the paid up value or the adjusted paid-up value, as the case may be, shall be reduced-
(a)in the case of a non-cumulative preference share, as indicated in the Table below.
THE TABLE
Numberof accounting years ending on the valuation date or in a casewhere the accounting year does not end on the valuation date, thenumber of accounting years ending on a date immediatelypreceding the valuation date, for which no dividend has beenpaid. Rateof reduction
1 2
Threeyears 10per cent of the paid up value or the adjusted paid up value asthe case may be.
Fouryears 20 do
Fiveyears 30 do
Sixyears and above 40 do
(b)in the case of a cumulative preference share, one-half of the rates specified in the aforesaid Table.
Explanation.- For the purpose of this rule, "adjusted paid-up value" in relation to a preference share, means an amount which bears to the paid-up value of the preference share the same proportion as the stipulated rate of dividend [being the rate of dividend on the preference share specified in the terms of issue of such share, and in a case where such dividend is required to be increased under the provisions of Section 3 of the Preference Shares (Regulation of Dividends) Act, 1960 (63 of 1960), the rate of dividend as so increased] [Inserted by G.S.R. 1536, dated 6th October, 1967] on such share bears to the rate of eight per cent.