Tax shall be deducted on the gross amount of dividend paid:
(a) In the case of dividend paid or collect tax from the amount of dividend in specie by Independent Power Purchasers (IPPs) whereas such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity:
The tax rate shall be 7.5 per cent.
(b) In mutual funds and real estate investment trust cases other than mentioned at (a) above and (ba) below:
The tax rate shall be 15 per cent.
(ba) In case of person receiving dividend from a company where no tax is payable by such company, due to exemption of income or carry forward of business losses under Part-VIII of Chapter-III or claim of tax credits under Part-X of Chapter-III.
The tax rate shall be 25 per cent.