Deemed dividend

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2011 Dear sir,
One of my client taken loan from their pvt ltd co. where he was shareholder more than 10% substantial interest.
Please tell whether he is come under section 2(22)e deemed dividend.If yes than tell me how to calculate the liability & how to come out of these matter.
My client debit balance at the end of the year of Rs.75 lakh apprx. Firm Profit is Rs. 12.52 thousand. Share holding of my client is 25%.

Please answer me its very urgent.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

22 November 2011 The liability of the client arises when the company is having accumulated profits. In a case where company has profits then to the extent the income is taxed under the head Income From other Sources in his hand.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now