Section 2 in The Companies (Temporary Restrictions On Dividends) Act, 1974
2. Definitions. In this Act, unless the context otherwise requires,-
(a)" appointed day" means the 6th day of July, 1974 ;(b)" company" has the meaning assigned to it in the Companies Act, 1956 , (1 OF 1956 ) and includes a foreign company within the meaning of section 591 of the Companies Act, 1956 , which has made arrangements prescribed under the Income- tax Act, 1961 , (43 OF 1961 ) for the declaration and payment of dividends within India;(c)" distributable profits in relation to a company to which this Act applies, means,-(i)one- third of the net profits of the company, or(ii)an amount required to pay twelve per cent. dividend on the face value of the equity shares of the company and dividend payable on its preference shares, whichever is lower;(d)" financial year" has the meaning assigned to it in section 2 of the Companies Act, 1956 ; (1 of 1956 ).(e)" net profits" means net profits of the company as computed in accordance with the provisions of section 349 of the Companies Act, 1956 , (1 of 1956 ) subject to the modification that-(i) any income- tax payable under the Income- tax Act, 1961 , (43 of 1961 ) in respect of the profits as so computed or any tax of a similar character payable in respect of such profits under any law in force in any country outside India, and surtax payable in respect of such profits under the Companies (Profits) Surtax Act, 1964 , (7 of 1964 ) shall also be deducted; and(ii)depreciation shall be provided in accordance with the provisions of section 205 of the Companies Act, 1956 ; (1 of 1956 )(f)" previous year" and" total income" have the meanings res- pectively assigned to them in the Income- tax Act, 1961 . (43 of 1961 )
