Where the stipulated dividend in respect of a preference share of a company—
(a)is specified to be subject to income-tax and a deduction is made therefrom on account of the income-tax payable by the company, or
(b)is being paid subject to a deduction therefrom on account of the income-tax payable by the company, notwithstanding the absence of any specification that the dividend would be subject to income-tax,
2[such deduction made by the company from any dividend declared after the 28th day of February, 1966 shall in no case exceed twenty-seven and a half per cent. of the aggregate of—
(i)the stipulated dividend, and
(ii)an amount equal to eleven per cent. of the stipulated dividend as specified in sub-section (3) of section 3.]]