Dividend definition under income tax law covers distributions, deemed dividends, exclusions, and accumulated profits rules. Dividend under the Income-tax Act is defined expansively to include distributions of a company's accumulated profits in several forms, including release of assets to shareholders, distributions of debentures or bonus shares to preference shareholders, liquidation proceeds attributable to accumulated profits, reductions of capital where accumulated profits exist, certain advances, loans or payments to substantial shareholders or related concerns in closely held companies, and payments made on purchase of a company's own shares in accordance with the Companies Act, 2013. The definition also excludes specified transactions from dividend characterization, including certain distributions on liquidation or reduction of capital, loans advanced in the ordinary course of business where money-lending is a substantial part of the company's business, amounts already treated as dividend and later set off, and distributions of shares pursuant to a demerger.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Dividend definition under income tax law covers distributions, deemed dividends, exclusions, and accumulated profits rules.
Dividend under the Income-tax Act is defined expansively to include distributions of a company's accumulated profits in several forms, including release of assets to shareholders, distributions of debentures or bonus shares to preference shareholders, liquidation proceeds attributable to accumulated profits, reductions of capital where accumulated profits exist, certain advances, loans or payments to substantial shareholders or related concerns in closely held companies, and payments made on purchase of a company's own shares in accordance with the Companies Act, 2013. The definition also excludes specified transactions from dividend characterization, including certain distributions on liquidation or reduction of capital, loans advanced in the ordinary course of business where money-lending is a substantial part of the company's business, amounts already treated as dividend and later set off, and distributions of shares pursuant to a demerger.
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