https://www.taxtmi.com/manuals?id=1215 Distribution of assets to shareholders on liquidation is treated as deemed dividend to the extent attributable to accumulated profits immediately before liquidation, whether capitalised or not. The rule applies only where there is liquidation and a distribution to shareholders, and excludes shares issued for full cash consideration where the holder has no right to surplus assets. Accumulated profits include profits up to liquidation, with special treatment where liquidation follows compulsory acquisition. Fair market value on the date of distribution is relevant, and shareholders are also dealt with under capital gains provisions. en-us Wed, 23 Sep 2015 16:40:00 +0530 Wed, 17 Jun 2026 17:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/manuals?id=1215 Distribution of assets to shareholders on liquidation is treated as deemed dividend to the extent attributable to accumulated profits immediately before liquidation, whether capitalised or not. The rule applies only where there is liquidation and a distribution to shareholders, and excludes shares issued for full cash consideration where the holder has no right to surplus assets. Accumulated profits include profits up to liquidation, with special treatment where liquidation follows compulsory acquisition. Fair market value on the date of distribution is relevant, and shareholders are also dealt with under capital gains provisions. Manuals Income Tax Wed, 23 Sep 2015 16:40:00 +0530 https://www.taxtmi.com/manuals?id=1215