Ashni Ltd. reduced its share capital and for that distributed to its shareholders an amount of ₹ 55,00,000. The company possessed accumulated profits of ₹ 35,00,000 as on the date of distribution. What shall be the amount to be assessed as deemed dividend?
A. ₹ 55,00,000
B. ₹ 35,00,000
C. ₹ 20,00,000
D. No deemed dividend
Answer:B
Ashni Ltd. reduced its share capital and for that distributed to its shareholders an amount of ₹ 55,00,000. The company possessed accumulated profits of ₹ 35,00,000 as on the date of distribution. What shall be the amount to be assessed as deemed dividend?
A. ₹ 55,00,000 B. ₹ 35,00,000 C. ₹ 20,00,000 D. No deemed dividend