Any distribution of Assets [Sec. 2(22)(a)] - Income Tax - Ready Reckoner - Income Tax

SEC 2(22)(a) : ANY DISTRIBUTION OF ASSETS Dividend includes any distribution of assets by a company to its shareholders to the extent the company possesses accumulated profits, whether capitalized or not. Note:- When assets are distributed under section 2(22)(a), 2(22)(c) and 2(22)(d) , the market value of the asset on the date of distribution has to be taken for computing the dividend. Dividend deemed u/s 2(22)(a) shall be taxable in the hands of the company hence it is exempt in the hands of shareholders u/s 10(34) .