Deemed dividend
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 May 2012
Dear sir,
Loan given by private limited company to a Director`s relative and company have a credit balance in profit and loss account.
is above loan treat as Deemed dividend
Loan given by private limited company to a Director`s relative and company have a credit balance in profit and loss account.
is above loan treat as Deemed dividend
14 May 2012
Hi
You have stated insufficient facts.
1. Loan to shareholder having more than 10% shareholding in a closely held company qualifies as deemed dividend.
Additionally, the loan may be to a concern in which such shareholder has a substantial interest or may be to another person for the benefit of such shareholder.
Accumulated profits include Credit Balance in P & L A/c and also other items.
A comprehensive study of all facts put together is required to determine an amount as deemed dividend.
You may visit https://canirmalg.wordpress.com/2010/02/02/deemedividend/
You have stated insufficient facts.
1. Loan to shareholder having more than 10% shareholding in a closely held company qualifies as deemed dividend.
Additionally, the loan may be to a concern in which such shareholder has a substantial interest or may be to another person for the benefit of such shareholder.
Accumulated profits include Credit Balance in P & L A/c and also other items.
A comprehensive study of all facts put together is required to determine an amount as deemed dividend.
You may visit https://canirmalg.wordpress.com/2010/02/02/deemedividend/
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