Deemed div. u/s 2(22)(e) ?
This query is : Resolved
CA Sahil Singla..
(Querist)
01 May 2012
Sir
Suppose co. has Rs 200000 as accumulated profits. It has given loan to Mr. X of Rs. 200000 taxable as deemed dividend u/s 2(22)(e). AFter some time this load was repaid to Co. by Mr. X. Now co. gives loan to another shareholder Mr. B of Rs. 100000.
Please tell me whether Rs. 100000 is deemed dividend ? I mean to say whether repayment of Loan by Mr. X to be considered while taxing Deemed dividend in hands of B ?
Suppose co. has Rs 200000 as accumulated profits. It has given loan to Mr. X of Rs. 200000 taxable as deemed dividend u/s 2(22)(e). AFter some time this load was repaid to Co. by Mr. X. Now co. gives loan to another shareholder Mr. B of Rs. 100000.
Please tell me whether Rs. 100000 is deemed dividend ? I mean to say whether repayment of Loan by Mr. X to be considered while taxing Deemed dividend in hands of B ?
sumit jain
(Expert)
01 May 2012
since 200000 has already been taken as deemed dividend, the limit if accumulated profit is exhausted.. hence subsequent loan to shareholder cannot be treated as deemed dividend even though all other conditions of 2(22)e are satisfied
Message likes :
1 times
Sumti Bhadani
(Expert)
01 May 2012
Agree with above expert.
Message likes :
1 times
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
- EPF ECR NEW FILE SEP 17TH 2026
- GST on Renting godown to KFCSC for Storage of Raagi
- Non filing of I T Returns
- Capitalgain tax purposes for valuation report compulsory
- Under marginal scheme
- TAX AUDIT ON PROFESSIONAL INCOME
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Oct 2025 Invoices
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
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
