redemptin of preference shares at premium

This query is : Resolved 

30 June 2008 redemption of preference shares at premium and the company has reserves
Will the same come under the ambit of dividend u/s 2(22)
If yes would it be liable to dividend distribution tax

02 July 2008 Dividend tax is ALWAYS APPLICABLE....it is applicable irrespective of whether it is paid out of current year profits reserves////



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