DeemedDividend Concept

Gud Day!! Santosh!!! This deemed dividend concept is purely a concept of Tax nd not an accounting concept. There's no accounting entry for that... The deemed dividend concept is defined in Sec. 2(22)(e) of the income tax act. This concept is being introduced to avoid misuse of the corporate veil proivded to the Company. Certain amounts paid to certain specified persons will be treated as Deemed dividend concept.. Its purely a tax concept and not an Accounts concept.. Keep Smiling Sunil

deemed dividend means dividend which is understood in the ordinary sense of the word alongwith the definition under section 2(22)of income tax act,1961.its basically a distribution by the company to the extent of its profits whether capitalised or not.

what is deemed dividend and what is derred Tax? can u please tell me how both of this Calculate (Please tell with Example)