Clubbing

This query is : Resolved

sakshi (Querist)
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25 May 2014 mrs sita held 12%shares in pvt ltd co.she gifted all shares to her husbans mr ram on 1 oct 2011.on 1 nov 2013 mr ram obtained loan of 60000 from a company when accumulated profit 100000.how it leads to clubbing however asset ie shares are transferred??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 May 2014 the clubbing is attracted where any income on the asset transferred for less than fair consideration under section 64. since the wife has only gifted the shares, the clubbing will apply.

Rupesh Jain

Rupesh Jain (Expert)
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26 May 2014 clubbing provision not applicable but in hand of shareholder u/s 2(22)(e) it will taxable as deemed dividend and company deducted the tDS 10% u/s 194.

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