Section 2(22)(e) of Income Tax Act, 1961, which deems certain payments as dividend, is applicable only to the shareholders of __________.

Official answer key: (A), (C). Official source note: Section 2(22)(e) of the Income tax Act, 1961 is applicable for company in which public is not substantially interested. Section 2(18) defines the company in which public are substantially interested. Other than not covered in section 2(18) may be called closely held company which also includes private company. Therefore, the provisions are applicable to both private and closely held company. i.e. option A & C