dividend income

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Baljeet Kaur (Querist)
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05 September 2010 Respected experts,

but sir there is some explaination in this sec 2(22)(c)about FULL VALUE OF CONSIDERATION u/s 46.What's that.
it is written that in this case of sec.2(22)(c) amt distributed is dividend income for share holders but only to the extent of accumulated profits whether capitalised or not and excess over it shall be FULL VALUE OF CONSIDERATION ass per sec.46 and capital gain shall be computed accordingly.
plllllleeeeeaaaassseee Help me

thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 September 2010 Dividend in its ordinary connotation means the sum paid to a shareholder proportionate to his/her shareholding in a company. But section 2(22) has devised a special inclusive definition of dividend. One among then is covered under sub section (c). As per this section , amount received by a share holder is taxable in his/her hands provided the following conditions are satisfied.
1) the company is on liquidation and
2) the company should have accumulated profits and
3) any distribution has been made to shareholders.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 September 2010 Original question is altered subsequent to my answer. This is ,according to me, is not a good practice.
However, I could not find such an explanation in section 2(22)(c) though it had three explanations.

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