deemed dividend ?
This query is : Resolved
Vijay Parmar
(Querist)
19 June 2010
if a pvt company given loan to directors. can we consider as a deemed dividend
i read as per the act its include as a dividend and taxed.
plz clarify ?
i read as per the act its include as a dividend and taxed.
plz clarify ?
hshivakumar
(Expert)
19 June 2010
yes if company given loan to director it will deemed dividend upto its accumulated profits.
Aditya Maheshwari
(Expert)
19 June 2010
If the director holds more than 10% of the capital of the company and loan is granted to him then provisions of Section 2(22)(e) will apply.
The said dividend is not exempt u/s 10(34) as DDT has not been paid on the same u/s 115O. Hence the same is taxable in the hands of the director.
The said dividend is not exempt u/s 10(34) as DDT has not been paid on the same u/s 115O. Hence the same is taxable in the hands of the director.
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