Deemed dividend - taxability & concept

Deemed Dividend is governed by section 2(22)(e).

There are basically 5 types of dividend as per Income Tax Act. the 5th one is this.

any payment by a Company (in which public is not substantially interested)

1) to any person having shareholding more than or equal to 10% of Co's total shareholding; or

2) to any concern in which the above mentioned person has substantial interest (having 20% profit sharing or more); or 

3) to any person on behalf of such shareholder,

will be termed as DEEMED DIVIDEND. This dividend would be taxable in the hands of shareholder.

Thanks, hope you got it!!