Transactions not considered as Dividend - Income Tax - Ready Reckoner - Income Tax

SEC 2(22): ALSO PROVIDES THAT DIVIDEND SHALL NOT INCLUDE i. Any advance or loan made to a shareholder or a concern by a company in the ordinary course of its business where the money lending is substantial part of the business of the company. ii. Any dividend paid by a company which is set off by the company against the whole or any part of sum previously paid by it and treated as dividend within the meaning of sub clause (e), to the extent to which it is so set off. iii. Any distribution made in accordance with clause (c) or clause (d) of section 2(22) in respect of any share issued for full cash consideration, where the holder of share is not entitled in the event of liquidation to participate in surplus asset iv. any payment made by a company on purchase of its own shares from a shareholder in accordance with the provisions of section 77A of the Companies Act, 1956 v. any distribution of shares pursuant to a demerger by the resulting company to the shareholders of the demerged company (whether or not there is a reduction of capital in the demerged company).