India - Income Tax Act 2010 - Saarc

1.13 CH. I - PRELIMINARY S. 2(22)86[(21) “Director General or Director” means a person appointed to be aDirector General of Income-tax or, as the case may be, a Director ofIncome-tax, under sub-section (1) of section 117, and includes aperson appointed under that sub-section to be 87 [an AdditionalDirector of Income-tax or] a 88 [Joint] Director of Income-tax or anAssistant Director 89 [or Deputy Director] of Income-tax ;](22) 90 “dividend” 91 includes—(a) any distribution 91 by a company of accumulated profits 91 , whethercapitalised or not, if such distribution entails the release by thecompany to its shareholders of all or any part of the assets of thecompany ;(b) any distribution 91 to its shareholders by a company of debentures,debenture-stock, or deposit certificates in any form, whetherwith or without interest, and any distribution to its preferenceshareholders of shares by way of bonus, to the extent to which thecompany possesses accumulated profits 91 , whether capitalised ornot ;(c) any distribution 91 made to the shareholders of a company on itsliquidation, to the extent to which the distribution is attributableto the accumulated profits of the company immediately before itsliquidation, whether capitalised or not ;(d) any distribution 91 to its shareholders by a company on the reductionof its capital, to the extent to which the company possessesaccumulated profits 91 which arose after the end of the previousyear ending next before the 1st day of April, 1933, whether suchaccumulated profits have been capitalised or not ;(e) any payment by a company, not being a company in which thepublic are substantially interested, of any sum (whether as representinga part of the assets of the company or otherwise)92[made after the 31st day of May, 1987, by way of advance or loanto a shareholder 93 , being a person who is the beneficial owner ofshares (not being shares entitled to a fixed rate of dividendwhether with or without a right to participate in profits) holdingnot less than ten per cent of the voting power, or to any concernin which such shareholder is a member or a partner and in which86. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.87. Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.88. Substituted for “Deputy” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.89. Inserted, ibid.90. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.91. For the meaning of the terms “dividend”, “distribution” and “profits”, see Taxmann’sDirect Taxes Manual, Vol. 3.92. Substituted for “by way of advance or loan to a shareholder, being a person who has asubstantial interest in the company,” by the Finance Act, 1987, w.e.f. 1-4-1988.93. For the meaning of the term “shareholder”, see Taxmann’s Direct Taxes Manual, Vol. 3.