[1] Omitted vide Finance Act, 2003, effective from 1-4-2004. Before omission it read as under :

80M. Deduction in respect of certain inter-corporate dividends.(1) Where the gross total income of a domestic company, in any previous year, includes any income by way of dividends from another domestic company, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of such domestic company, a deduction of an amount equal to so much of the amount of income by way of dividends from another domestic company as does not exceed the amount of dividend distributed by the first-mentioned domestic company on or before the due date.

(2) Where any deduction, in respect of the amount of dividend distributed by the domestic company, has been allowed under sub-section (1) in any previous year, no deduction shall be allowed in respect of such amount in any other previous year.

Explanation.For the purposes of this section, the expression due date means the date for furnishing the return of income under sub-section (1) of Section 139.

Earlier Section 80M was inserted vide Finance Act, 2002, effective from 1-4-2003. Before that it, was substituted vide Finance Act, 1990, effective from 1-4-1991. It was earlier substituted vide Finance Act, 1986, with effect from 1-4-1987. Original Section 80M was introduced in place of Section 85A (inserted by the Finance Act, 1965, with effect from 1-4-1965) vide Finance (No. 2) Act, 1967, with effect from 1-4-1968. Section 80M, which has earlier been amended several times vide Finance Act, 1968, with effect from 1-4-1968, Finance Act, 1970, with effect from 1-4-1971, Finance (No. 2) Act, 1971, with effect from 1-4-1972, Finance Act; 1975, with effect from 1-4-1976, Finance Act, 1976, with effect from 1-4-1977, Finance Act, 1981, with effect from 1-4-1982, Finance Act, 1982, with effect from 1-4-1983 and Finance Act, 1984, with effect from 1-4-1985, stood as under :