Deemed dividend u/s 2(22)(e)

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divesh (Querist)
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09 October 2012 is public limited company pay remuneration to its directors more than 11% of profit before tax? is in assessment, commissioner can raise question on it & considered more than 11% remuneration as deemed dividend?

Manish Khandelwal

Manish Khandelwal (Expert)
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09 October 2012 Deemed dividend U/S 2(22)(e) is applicable on closely held companies not on public companies.

divesh

divesh (Querist)
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09 October 2012 in my case, co. is closely held company only.

Manish Khandelwal

Manish Khandelwal (Expert)
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09 October 2012 1. your query is defining a public co. not private company.

2. sec 2(22)(e) is applicable when a shareholder takes loan from such co. or a firm in which he is partner.

divesh

divesh (Querist)
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09 October 2012 its closely held public ltd.co., hence, director is the share holder.