https://www.taxtmi.com/article/detailed?id=7876 The article contends that deemed dividend under section 2(22)(e) should be discontinued because loans, advances or deposits from closely held companies to substantial shareholders are capital-account, refundable transactions, not income, and current deemed-dividend rules create complex compliance burdens and litigation. The Finance Bill 2018's proposal to tax such deemed dividends at company level via amendments to section 115-O and omission of the post-115Q explanation is criticized as unlikely to resolve disputes over beneficial ownership, stake computation, accumulated surplus adjustments, and constitutional validity; the author urges repeal of the deemed-dividend provision. en-us Fri, 09 Feb 2018 07:40:46 +0530 Fri, 09 Feb 2018 07:40:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=7876 The article contends that deemed dividend under section 2(22)(e) should be discontinued because loans, advances or deposits from closely held companies to substantial shareholders are capital-account, refundable transactions, not income, and current deemed-dividend rules create complex compliance burdens and litigation. The Finance Bill 2018's proposal to tax such deemed dividends at company level via amendments to section 115-O and omission of the post-115Q explanation is criticized as unlikely to resolve disputes over beneficial ownership, stake computation, accumulated surplus adjustments, and constitutional validity; the author urges repeal of the deemed-dividend provision. Articles Income Tax Fri, 09 Feb 2018 07:40:46 +0530 https://www.taxtmi.com/article/detailed?id=7876