other sources
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 May 2010
related to section 2(22)(e)
if a closely held company x ltd. advances loan to y ltd. for the benefit of A,an individual shareholder holding 10% shares of X ltd.,then what shall be the taxability implications of the aforesaid transaction..?
and is individual covered within the context of concern as per the same section??
Further will it make any difference if A is a company ?
if a closely held company x ltd. advances loan to y ltd. for the benefit of A,an individual shareholder holding 10% shares of X ltd.,then what shall be the taxability implications of the aforesaid transaction..?
and is individual covered within the context of concern as per the same section??
Further will it make any difference if A is a company ?
04 May 2010
The same will be taxable in the hands of Mr A as dividend income since the same is not subject to Corporate Dividend Tax in the hands of the company (X Ltd) to the extent the company possesses accumulated profits.
No, since as per explanation 3 to the aforesaid section reads as follows:
"concern means a Hindu undivided family, or a firm or an association of persons or a body of individuals or a company
It does no make any difference as to whether A is a company since the section mentions the word "being a person who is the beneficial owner of shares" and as per section 2(31) person includes a company.
No, since as per explanation 3 to the aforesaid section reads as follows:
"concern means a Hindu undivided family, or a firm or an association of persons or a body of individuals or a company
It does no make any difference as to whether A is a company since the section mentions the word "being a person who is the beneficial owner of shares" and as per section 2(31) person includes a company.
04 May 2010
The queriest did not mention the percentage of shareholding held by Mr. A in M/s. Y Ltd and also the X Ltd has any accumulated profits or not. Kindy furnish this particulars
04 May 2010
AGREED WITH MR. SRINIVASAN, DEEMED DIVIDEND IS TAXABLE SUBJECT TO LIMIT OF ACCUMULATED PROFIT
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
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- 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
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
