Loan to director
Querist : Anonymous
Querist : Anonymous
if the loans were given in 2012, then for what purpose you are asking for the procedure to give such loans??
Querist : Anonymous
when a company gives loan to director, it is called as "Deemed Dividend" as per Income Tax Act 1961 and ultimately the company has to pay dividend distribution tax on such loan.
Further, the procedure of companies act has to be followed
regards
deemed dividend applies to shareholder. It is not automatic assumption that director is the shareholder or the substantial shareholder.
In a given situation, a company is a Pvt Ltd Co.
In most cases Pvt Co is closely held / family owned company wherein either directors are themselves shareholders or at least the family members.
So deemed dividend concept is very much applicable.
Querist : Anonymous
However, this won't change the nature of transaction and the director still have to repay this loan back.
Click here to login now
Similar Resolved Queries
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- ITC BENEFIT ON BROKRAGE PAID
- Residential status of non resident
- Gst reverse charge mechanism to be claimed in the month of payment
- Sale of Mutual Funds In Diffirent Financial Years
- CASH GIFT FROM BLOOD RELATIVE
- ITR 44AD SECTION
- GST ISD Query on various AMCs
- REGARDING ITR FILING QUESTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
