Section 80M → Section 148

Deduction for inter-corporate dividends (avoids cascading)

Section 80M of the old Income-tax Act, 1961 · new section 148 under the Income-tax Act, 2025

New reference Section 148

Income-tax Act, 1961Section 80M

Domestic company receiving dividends from another domestic company, foreign company or business trust
Deduction up to dividend it distributes one month before the return due date
Introduced from AY 2021-22 after DDT abolition

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 148

Section 148: same deduction
Same one-month-before-due-date condition
No double deduction for the same amount

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered; substance unchanged.

Practice notes

Companies opting for the 22% regime (section 200, old 115BAA) can still claim this deduction — section 200 allows sections 146 and 148.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 80M in the new Income Tax Act?

Section 148 of the Income-tax Act, 2025.

What changed in section 80M under the new Income Tax Act?

Renumbered; substance unchanged.

Is section 80M still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 80M of the 1961 Act. Section 148 of the 2025 Act applies from tax year 2026-27.

Related sections

115BAA→200Concessional 22% tax rate option for domestic companies 2(22)→2(40)Definition of dividend — deemed dividend 2(22)(e) and buy-back clause removed 194→393(1)TDS on dividends paid by domestic companies