Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Deemed dividend

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

sheelendra sharma

sheelendra sharma (Querist)

13 March 2016 what is deemed dividend

Sathish M

Sathish M (Expert)

13 March 2016 Section 2(22)(e) of the income tax act defines deemed dividend. The same is reproduced for your understanding - “any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) made after the 31st day of May, 1987, by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than ten per cent of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial interest (hereafter in this clause referred to as the said concern) or any payment by any such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits;”

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now