Deemed dividend
This query is : Resolved
31 October 2012
Please inform the tax implications of the following under the ambit of Sec-2(22)(e) wit logic & relevant case law, if possible:
1. A pvt ltd co is paying PF & ESI of a partnership firm i which two of its directors hold 50% voting power. The company is also a partner in the said firm. The partnership firm is reimburshing the suc to the company.
2. A Pvt Co company makes payment on behalf of shareolder olding more than 10% voting power & such amount is utilised for the benefit of such shareholder & spouse.
3. A Pvt ltd co who is engaged in the money lending business gives any advance to a person where such advance is utilised for the individual benefit of one of its shareholder holding more than 10% voting power.
Regards
1. A pvt ltd co is paying PF & ESI of a partnership firm i which two of its directors hold 50% voting power. The company is also a partner in the said firm. The partnership firm is reimburshing the suc to the company.
2. A Pvt Co company makes payment on behalf of shareolder olding more than 10% voting power & such amount is utilised for the benefit of such shareholder & spouse.
3. A Pvt ltd co who is engaged in the money lending business gives any advance to a person where such advance is utilised for the individual benefit of one of its shareholder holding more than 10% voting power.
Regards
01 November 2012
1 & 2 case its deemed dividend. in case 3 its normal business of company to lend money hence not taxable.
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Tax on Deemed Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Banking Related Issue
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
