LOAN FROM DIRECTOR

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2010 Mr. A is a director of a company M/s ABC.
M/s ABC taken Rs 10,00,000/-as a loan from Director ( Mr. A ) then company refund 10,00,000/- and interest thereon but then company by mistake given another 15,00,000/- to the director Mr A.
how solve this promblem is it a case of deemed dividend then how is it calculated?
Please advise

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 May 2010 TRY TO CLEAR THAT LOAN ADVANCED TO DIRECTOR WITHIN SAME FINANCIAL YEAR.
I AGREE IT WILL ATTRACT SEC. 2(22)(e).
THE ENTIRE AMOUNT OF RS 15 LACS WILL BE ADDED IN THE INCOME OF MR. A AS DEEMED DIVIDEND PROVIDED THE COMPANY HAD ENOUGH RESERVE AND SURPLUS.
PLEASE TELL ME THE BUSINESS OF COMPANY AND ENTIRE DETAIL SO THAT WE CAN GIVE AMICABLE SUGGESTION.

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