Section 2-22-e -deemed dividend


This query is : Resolved 

06 January 2010 Dear Sir,

If the accumlated profit of the lender company consisting of capital gains on sale of Investments would be considered while calculating accumlated profit for the section 2-22-e deemed dividend under i.t. act,1961.

thank you.

07 January 2010 Yes it must considered u/s 2(22)(e) for deemeed dividend of Income-tax Act, 1961.

Since profit become free reserve after selling of Investments.


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