Please Help: Accumalated Profit for Deemed Dividend u/s 2(22)(e)
Posted Date : 11-Dec-2013 , 12:13:31 pm | Posted By: Devendra Ranka
Category :
Income Tax | Answers :
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Whether Balance of Reserve & Surplus (General Reserve & profit and loss a/c only)as on the last Balance Sheet Date will Consider as a Accumulated Profit for the purpose of Sec 2(22)(e).
Profit for the year upto the date of Loans & Advances OR for the whole Current Financial year will be consider as a Accumalated Profit for the purpose of Sec 2(22)(e) |
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Answers:
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 Answer by: Shankygarg |
| Accumulated Profits for the Purposes of Section 2(22)(e) :-
(i)Sub-clause (e) applies when distribution or payment referred to therein are connected with accumulated profits. Accumulated profits shall include all profits of the company till the date of distribution or payment referred to in sub-clause (e).
(ii)Current profits are included in "accumulated profits" in section 2(22)(e) of I.T. Act 1961. The expression "accumulated profits" was defined in the 1961 Act so as to include current profit upto date of distribution or payment.
Read more at: http://www.caclubindia.com/forum/section-2-22-e-deemed-dividend-246640.asp#.UqhV1NIW3_Q
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