TaxTMI 
TaxTMI 
Transactions not considered as Dividend - (New) Section 2(40) / (Old) Section 2(22)
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....tion, where the holder of the share is not entitled in the event of liquidation to participate in the surplus assets; (ii) any advance or loan made to a shareholder or the said concern by a company in the ordinary course of its business, where the lending of money is a substantial part of the business of the company; (iii) any dividend paid by a company which is set off by the company agains....
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.... purposes of items (B) and (C), the country or territory outside India shall be specified by the Central Government, by notification, Meaning of Important Term (I) "Finance Company" and "Finance Unit" shall have the same meaning as respectively assigned to them in regulation 2(1)(e) and (f) of the International Financial Services Centres Authority (Finance Company) Regulations, 2021 made und....
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....iary and such entity,- (a) exercises or controls more than one-half of the total voting power either at its own or together with one or more of its subsidiaries; or (b) controls the composition of the Board of Directors; Under Section 2(22) of the Income Tax Act, 1961 [ Upto 31.03.2026 ] i. Any advance or loan made to a shareholder or a concern by a company in the....
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....sp;of the Finance Act, 2025] iii. Any distribution made in accordance with clause (c) or clause (d) of section 2(22) in respect of any share issued for full cash consideration, where the holder of share is not entitled in the event of liquidation to participate in surplus asset iv. any payment made by a company on purchase of its own shares from a shareholder in accordance with the prov....