Section 3
SEC. 3. Section twenty-nine of the same Act is hereby amended by adding a new subsection to read as follows: "SEC. 29. Gross Income.— "(a)General definition.— "(b)Exclusions from gross income.— "(c)Dividends received domestic corporations.—In the case of dividends received by a domestic dent foreign corporation from a domestic corporation both liable to the tax rates provided in the second and third paragraphs of Section twenty-four(a), only twenty-five per cent of such dividends shall be returnable for purposes of the tax in the same paragraphs.”