Substantial interest u/s 2(22)(e)

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Can you explain the meaning of Substantial interest u/s Sec 2(22)(e)

AI Summary

Exploring 'Substantial Interest' in Section 2(22)(e) of the Income Tax Act: Key Implications for Shareholders and Companies. A discussion on the meaning of 'substantial interest' under Section 2(22)(e) of the Income Tax Act was initiated. The section addresses payments by a company to shareholders as deemed dividends, contingent on the company having accumulated profits. It applies to beneficial owners of equity shares with at least 10% voting power, or concerns where such shareholders have a substantial interest. Substantial interest is defined as holding at least 20% voting power in a company or a 20% beneficial interest in the income of other concerns like Hindu undivided families, firms, or associations.