cross holding by a pvt ltd company same director
This query is : Resolved
CS Amit Kr Jain
(Querist)
11 August 2010
Sir
Two pvt ltd company having investments in each other and a common director holding more than 10% share in each company .
is this applicable according to corporate law,how or any other law ,like payment made to companies can be treated as deemed dividend.u/s 22 of IT act.
what are the conditions and consequences of this cross holding?
Two pvt ltd company having investments in each other and a common director holding more than 10% share in each company .
is this applicable according to corporate law,how or any other law ,like payment made to companies can be treated as deemed dividend.u/s 22 of IT act.
what are the conditions and consequences of this cross holding?
Aditya Maheshwari
(Expert)
11 August 2010
If a company lends money to a shareholder holding more than 10% of the share capital then provisions of Section 2(22)(e) of the income tax act applies and it will taxable in the hands of the receiving company as deemed dividend.
There is no such restriction as per companies act since both are pvt. ltd. company.
There is no such restriction as per companies act since both are pvt. ltd. company.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Oct 2025 Invoices
- Under marginal scheme
- Import of Software Service.
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
