Section 2(22)(e)

Is Proposed Amendment in Finance Bill 2018 Levying Tax on Deemed Dividend u/s 2(22)(e), Results in Double Taxation??

Income Tax - The Finance Bill 2018, has proposed to cover deemed dividend u/s 2(22)(e) of Income Tax Act, also for levy of dividend distribution tax @ 30%, u/s 115-O of Income Tax Act, in the hands of a closely held company paying such deemed dividends. Apprehensions have been raised in some quarters as to whether the proposed amendment will result in...

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Budget Shocker: 30% Dividend Distribution Tax on Deemed Dividend

Income Tax - Deemed dividend U/s. 2(22(e) is proposed to be taxed at the rate of 30 per cent. (without grossing up) in order to prevent camouflaging dividend in various ways such as loans and advances....

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Clouds on deemed dividend provisions now cleared

Income Tax - The important aspect while planning restructuring proposals is the applicability of deemed dividend provisions that was under the controversial route which is now put to rest with the latest ruling by the Apex Court. The muddle of taxability under deemed dividend as per section 2(22)(e) is now cleared by the latest ruling of the Apex Cou...

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Tax Treatment of Dividend Received From A Foreign Company

Income Tax - Article discusses about Meaning of dividend, Head of taxability and applicable tax rate, Relief from double taxation, Concessional rate of tax to dividends received from foreign specified company,...

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Snippet on taxability of capital reduction

Income Tax - Capital reduction is a commonly adopted tool by companies for re-engineering their capital structure. The need for reducing share capital may arise owing to a number of reasons, such as returning excess funds to the shareholders, adjustment of accumulated losses, minority squeeze out, improving EPS, producing a more efficient capital stru...

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Deemed Dividend applicable if Assessee diverted amount received for procuring Import Licenses for Share purchase

Commissioner of Income Tax Vs. M/s Prasidh Leasing Limited (Delhi High Court) - While hearing the case of Commissioner of Income Tax vs M/s Prasidh Leasing Limited, the Delhi High Court ruled that Provisions of Deemed Dividend applicable when Assessee diverted Advance amount received for procuring import licenses for purchase of shares under Section 2(22)(e) of the Income Tax A...

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Deemed dividend assessable in the hands of Partners (Beneficial Shareholders )

M/s. Kerala Transport Co. Vs. The Asst. Commissioner of Income-tax (ITAT Cochin) - Tribunal held that the beneficial shareholders of the lender company are partners of the assessee- firm and therefore the deemed dividend u/s 2(22)(e) has to be assessed only in the hands of the partners and not in the hands of the assessee- firm....

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No Deemed Dividend U/s. 2(22)(e) If Assessee is not a Shareholder in Payer Company

Mr. Tushar Kothari Vs. DCIT (ITAT Delhi) - Mr. Tushar Kothari Vs. DCIT (ITAT Delhi) The intention behind enacting provisions of Section 2(22)(e) is that closely held companies (i.e. companies in which public are not substantially interested), which are controlled by a group of members, even though the company has accumulated profits would no...

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S. 2(22)(e) deemed dividend not applicable on amount received from Subsidiary Co. as part of Regular Business Transactions

The Commissioner of Income Tax Vs. M/s Malayala Manorama Co. Ltd. (Kerala High Court) - CIT Vs. M/s Malayala Manorama Co. Ltd. (Kerala High Court) Amounts under the disputed heads were being received by the Assessee from its Subsidiary Company only as part of regular business transactions, which was being accounted properly. The change in circumstance, as to the distribution of dailies...

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Advance cannot be treated as deemed dividend if Assessee do not have substantial interest

Roshan Lal Jindal Vs DCIT (ITAT Chandigarh) - The issue in hand pertains to addition made on account of deemed dividend as per provisions of section 2(22)(e) of the Act. Being a deeming provision, bringing to tax sums which are not actually in the nature of income but are only deemed to be so, it is to be strictly interpreted. Section 2(22)(e) ...

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No deemed dividend U/s. 2(22)(e) on trade advances in the nature of commercial transactions: CBDT

Circular No. 19/2017-Income Tax - (12/06/2017) - Section 2(22) clause (e) of the Income Tax Act, 1961 (the Act) provides that dividend includes any payment by a company, not being a company in which the public are substantially interested, of any sum by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares...

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Section 2(22)(e)’s Popular Posts

Recent Posts in "Section 2(22)(e)"

Deemed Dividend applicable if Assessee diverted amount received for procuring Import Licenses for Share purchase

Commissioner of Income Tax Vs. M/s Prasidh Leasing Limited (Delhi High Court)

While hearing the case of Commissioner of Income Tax vs M/s Prasidh Leasing Limited, the Delhi High Court ruled that Provisions of Deemed Dividend applicable when Assessee diverted Advance amount received for procuring import licenses for purchase of shares under Section 2(22)(e) of the Income Tax Act 1961....

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Deemed dividend assessable in the hands of Partners (Beneficial Shareholders )

M/s. Kerala Transport Co. Vs. The Asst. Commissioner of Income-tax (ITAT Cochin)

Tribunal held that the beneficial shareholders of the lender company are partners of the assessee- firm and therefore the deemed dividend u/s 2(22)(e) has to be assessed only in the hands of the partners and not in the hands of the assessee- firm....

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No Deemed Dividend U/s. 2(22)(e) If Assessee is not a Shareholder in Payer Company

Mr. Tushar Kothari Vs. DCIT (ITAT Delhi)

Mr. Tushar Kothari Vs. DCIT (ITAT Delhi) The intention behind enacting provisions of Section 2(22)(e) is that closely held companies (i.e. companies in which public are not substantially interested), which are controlled by a group of members, even though the company has accumulated profits would not distribute such profit as dividend bec...

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S. 2(22)(e) deemed dividend not applicable on amount received from Subsidiary Co. as part of Regular Business Transactions

The Commissioner of Income Tax Vs. M/s Malayala Manorama Co. Ltd. (Kerala High Court)

CIT Vs. M/s Malayala Manorama Co. Ltd. (Kerala High Court) Amounts under the disputed heads were being received by the Assessee from its Subsidiary Company only as part of regular business transactions, which was being accounted properly. The change in circumstance, as to the distribution of dailies/publications in the Gulf, causing the s...

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Is Proposed Amendment in Finance Bill 2018 Levying Tax on Deemed Dividend u/s 2(22)(e), Results in Double Taxation??

The Finance Bill 2018, has proposed to cover deemed dividend u/s 2(22)(e) of Income Tax Act, also for levy of dividend distribution tax @ 30%, u/s 115-O of Income Tax Act, in the hands of a closely held company paying such deemed dividends. Apprehensions have been raised in some quarters as to whether the proposed amendment will result in...

Read More
Posted Under: Income Tax |

Advance cannot be treated as deemed dividend if Assessee do not have substantial interest

Roshan Lal Jindal Vs DCIT (ITAT Chandigarh)

The issue in hand pertains to addition made on account of deemed dividend as per provisions of section 2(22)(e) of the Act. Being a deeming provision, bringing to tax sums which are not actually in the nature of income but are only deemed to be so, it is to be strictly interpreted. Section 2(22)(e) of […]...

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Sectio 2(22)(e): Registered owner Vs. beneficial owner: SC refers matter to larger bench

National Travel Service Vs. CIT (Supreme Court of India)

National Travel Service Vs. CIT (Supreme Court of India) The question that arises in these appeals is as to whether Section 2(22)(e) of the Act gets attracted inasmuch as a loan has been made to a shareholder, who after the amendment, is a person who is the beneficial owner of shares holding not less than […]...

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Applicability of provisions of section 2(22)(e) to Beneficial Shareholder or Registered Shareholder- Supreme Court Ruling in National Travel v CIT

National Travel Service Vs. CIT (Supreme Court of India)

Sec. 2(22)(e) of the Income Tax Act, 1961 (the Act), is one such deeming provision that has remain point of litigation over various issues since its inception. One such issue is applicability of provisions of section 2(22)(e) when a shareholder is beneficial shareholder or registered shareholder....

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Deemed Dividend provision attracted on Loan Taken to pay Salary

Dinesh Kumar Agarwal Vs. ITO (ITAT Hyderabad)

Taking loan from closely held company to discharge the payment of salary is to be treated as a commercial transaction. We are not in agreement with the submissions of the ld. AR as the salary commitment is in the proprietary concern, in which, assessee is the sole owner and any loan taken from the closely held company wherein assessee is ...

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Budget Shocker: 30% Dividend Distribution Tax on Deemed Dividend

Deemed dividend U/s. 2(22(e) is proposed to be taxed at the rate of 30 per cent. (without grossing up) in order to prevent camouflaging dividend in various ways such as loans and advances....

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Posted Under: Income Tax |
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