Distribution of assets in the event of Liquidation - (New) Section 2(22)(c) / (Old) Section 2(22)(c)

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....he extent to which the distribution is attributable to the accumulated profits of the company immediately before its liquidation, whether capitalised or not; Condition for Clause (c) of the section 2(40) • (a) There must be a liquidation • The company must have entered liquidation (voluntary or compulsory). • (b) There must be a distribution to shareholder....

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.... a corporation owned or controlled by the Government under any law in force include any profits of the company before three successive tax years immediately preceding the tax year in which such acquisition took place; Under Section 2(22)(c) of the Income Tax Act, 1961 [ Upto 31.03.2020 ] Dividend includes any distribution made to the shareholders of a company on its liquidation....

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....ompany, then he shall be chargeable to income-tax under the head capital gains and the sales consideration for the purposes of section 48 shall be as under: Moneys Received Add: Market value of the assets received as on the date of distribution Less: Amount assessed as dividend under section 2(22)(c) Sales consideration as dividend under section 2(22)(c) Sec....