I learnt that u/s 2(22)(a) if a domestic company distributes asset to its shareholders it is taxable in hands of shareholder to the extent of accumulated profit (Capitalized or not)
I have a doubt. Suppose the accumulated profit is 12 lacks and Company distributes assets of
case 1: 3 lack to SH 1 and 2 lack to SH 2
case 2: 7 lack to SH 1 and 6 lack to SH 2
In case 1 the total taxable amount will be 5 lack and in case 2 it will be 12 lack. But how much amount will be taxable in hands of each SH??
CAclubindia
