Can any tell me what is the difference between Sec 2(22)(c) and 2(22)(e)?? Its urgent ...........................
Sandeep Pandey (CA FINAL) (1306 Points)
21 October 2009Can any tell me what is the difference between Sec 2(22)(c) and 2(22)(e)?? Its urgent ...........................
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 21 October 2009
2(22)C deals with distribution made to share holders of a company on its liquidation; to the extent of accumulated profits whether capitalised or not.
2(22)(e) covers loans/advances made by company (other than company in which public is substantially interested) to its shareholders or concerns; these advances can be to the extent of accumulated profits excluidng capitalised profits.
CA Rahul Jain
(CA)
(1162 Points)
Replied 21 October 2009
sec 2(22)(e)--- loans advances made by a company to the person having substantial interest in the company would be treated as deemed dividend and is taxable in the hands of the shareholders. this div is not covered u/s 10(34)
Sec 2(22)(c)-- amount distributed to shareholders by a company on liquidation to the extent of accumlated profits whether capitalised or not and this amount(to the extent of accumlated profits) is exempt in the hands of the shareholders and the company has to pay DDT.
Lucky Jain
(student)
(210 Points)
Replied 21 October 2009
| Originally posted by :MOHIT MAHAJAN | ||
| " | 2(22)C deals with distribution made to share holders of a company on its liquidation; to the extent of accumulated profits whether capitalised or not. 2(22)(e) covers loans/advances made by company (other than company in which public is substantially interested) to its shareholders or concerns; these advances can be to the extent of accumulated profits excluidng capitalised profits. |
" |
AGREEEEEEEEE
CAclubindia
