Schedule 80M – Schedule for claiming deduction under Section 80M AY 2026-27
‘Schedule 80M’ in the Income Tax Return (ITR) form applies to domestic companies claiming deduction under Section 80M of the Income-tax Act, 1961. This provision allows a deduction to a domestic company for dividends received from another domestic company, a foreign company, or a business trust, provided such dividend income is further distributed as dividends to its own shareholders.
The deduction is allowed only to the extent such dividend is further distributed as dividend by the domestic company on or before one month prior to the due date for furnishing the return of income under Section 139(1).
This schedule requires information such as the date of dividend distribution, the amount of dividend distributed, and the schedule under which dividend income is offered.
Section 80M of Income-tax Act, 1961
As per Section 80M, a domestic company is eligible to claim deduction in respect of dividends received from another domestic company, a foreign company, or a business trust, provided such dividend is further distributed to its shareholders. This deduction, introduced with effect from Assessment Year 2021-22, is restricted to the lower of
(a) the amount of dividend received, or
(b) the amount of dividend distributed on or before one month prior to the due date of furnishing the original return of income.
Further, Section 80M specifically provides that a dividend claimed as deduction in one year cannot again be claimed in any other year, ensuring there is no double deduction.
This schedule applies to ITR-6.