Section 115BBD
Tax on certain dividends received from foreign companies
Quick Answer
Section 115BBD (Tax on certain dividends received from foreign companies) has been deleted under the Direct Tax Code 2025, effective 1st April 2026.
Sec 115BBD
Provision Summary
Provided a concessional tax rate of 15% on dividends received by an Indian company from a specified foreign company (where it holds 26%+ equity).
Deleted
Provision Summary
NA. Sunset provision. Dividends from foreign subsidiaries are now taxed at normal corporate slab rates.
Key Changes & Highlights
- Concessional rate abolished to simplify corporate tax structures.
Frequently Asked Questions
What does Section 115BBD of the Income Tax Act 1961 deal with?
Section 115BBD (Tax on certain dividends received from foreign companies) Provided a concessional tax rate of 15% on dividends received by an Indian company from a specified foreign company (where it holds 26%+ equity).
Is Section 115BBD of the ITA 1961 still applicable under DTC 2025?
Section 115BBD has been deleted under the Direct Tax Code 2025. NA. Sunset provision. Dividends from foreign subsidiaries are now taxed at normal corporate slab rates.
What is the status of Section 115BBD under the new tax code?
Section 115BBD is marked as "Deleted" with status "Sunset". Impact: Medium - Historical corporate tax planning reference.
What are the key changes to Section 115BBD under DTC 2025?
Concessional rate abolished to simplify corporate tax structures.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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