TAX ON DEEMED DIVIDEND

This query is : Resolved

SHANTANU SHARMA (Querist)
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11 September 2008 hello everybody,
i want 2 know about that whether any TDS is charged on deemed dividend. I have read it but right now i am not getting it.

if some one know the section no. , rate, and provision in brief please tell me i am in urgent need.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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12 September 2008 The amount of advance can be treated as deemed dividend u/s 2(22)(e) of the Income Tax Act if the company is having accumulated profits available for distribution of dividends to the tune of advances. In that case the amount will be taxable in the hands of director/shareholder u/s 56 of the Income Tax Act. Also, the company will have to deduct Tax at Source u/s 194. Further, dividend distribution tax u/s 115O is not payable in such a case.