Deep Dive into the Hidden World of Deemed Dividends: Unravel the Tax Complexities of those Unconventional Profit Routes

Article #31396: India has overhauled dividend taxation, abolishing the Dividend Distribution Tax regime and introducing a classical system where dividends are taxed in investors' hands, with domestic companies obligated to deduct tax at source on dividend payments to resident and non-resident shareholders. (Please right click me to read further)

Article #31398: Deemed dividends are company payments or benefits to shareholders treated as dividends for tax purposes, even if not officially declared, encompassing transactions like loans, expenditures for shareholder benefits, asset distributions, and share transfers below market value. (Please right click me to read further)

Article #31420: The court ruled that deemed dividends under Section 2(22)(e) can only be taxed in the hands of shareholders of the lending company, not non-shareholders, clarifying the interpretation of this provision and the intention behind it. (Please right click me to read further)

Article #31421: The Authority for Advance Rulings held that when a company issues bonus redeemable preference shares to existing equity shareholders, it does not constitute a deemed dividend under Section 2(22), as there is no actual release of company assets to shareholders. (Please right click me to read further)

Article #31418: The Tribunal ruled that interest paid on delayed deposit of Tax Deducted at Source is not an allowable expenditure, but loans received from a group company cannot be treated as deemed dividends under Section 2(22)(e) if the recipient is not a shareholder in the lending company. (Please right click me to read further)

Article #31419: The Tribunal upheld that loans given by a company to another concern where a common shareholder has substantial interest in both can be treated as deemed dividends taxable in that shareholder's hands under Section 2(22)(e). (Please right click me to read further)

Article #31417: The Tribunal ruled that Cognizant Technology Solutions India's purchase of its own shares from non-resident shareholders, involving capital reduction, amounted to dividend distribution under Section 2(22), attracting dividend distribution tax under Section 115-O. (Please right click me to read further)

Article #12103: The High Court dismissed the Revenue's appeal, upholding the Tribunal's decision that deemed dividend under Section 2(22)(e) cannot be assessed in the hands of a non-shareholder, providing guidance on the interpretation and application of this provision. (Please right click me to read further)

Article #13039: The court ruled that Section 2(22)(e), dealing with deemed dividends, can only be applied if the assessee is a shareholder of the lending company, emphasizing the principle of strict interpretation of tax laws. (Please right click me to read further)

Article #31422: The Tribunal held that transactions carried out in the ordinary course of business should not be treated as deemed dividend under Section 2(22)(e), unless they meet specific criteria outlined in the Act. (Please right click me to read further)

Article #31423: The court ruled that wives cannot claim 50% beneficial ownership of company shares held by their husbands under the Portuguese Civil Code to avoid deemed dividend taxation under Section 2(22)(e) of the Income Tax Act. (Please right click me to read further)

Article #31395: The notion of deemed dividends broadens the scope of dividend taxation, encompassing various forms of profit appropriation by companies, even if not outright dividend distributions, aiming to prevent tax evasion through indirect means. (Please right click me to read further)