25 August 2020
As per the provisions of Income Tax Act, any amount paid by way of dividend on preference share as well as reduction of pref.cap is to be treated as deemed dividend.
After showing this amount of dividend as well as part Redemption of preference share, the amount lying as a cost of Pref.shares,will it be allowed as deduction from other income without any limit ? If the cost and the redemption amount is less then the the dividend received ,can be show the income as negative in other sources.
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