Deemed dividend

the amount of loan/advances to the extent of accumulated profit

Means whichever is less?

Yes, whichever is les

Payment by closely held company as loan or advance to:
a) its shareholder holding 10% or more or
b) any concern in which shareholder is substantially interested
c) any otherperson on behalf of the shareholder

to the extent of accumulated profits of the company calculated on the date of loan/advance shall be deemed as dividend in the hands of shareholder.(exmept u/s 10(34))

Company shall pay CDT @ 34.944%

thnx for the details

@ Uday Rathi Deemed Dividend Under Section 2(22)(e) is taxable in Hands of SHAREHOLDERS and not in hands of Company. Company pay DDT on Dividend covered under Section 2(22)(a)/(b)/(c)/(d) but that does not cover Sec 2(22)(e).

And I think Normal DDT paid by company is also @ 20.9248% after Grossing Up not 34.944%.

Please correct me if I'm wrong.

Thanks.