Section 58a & section 2(22) (e)

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Vijay Krishna (Querist)
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09 September 2014 Hi,

Deemed dividend concept says that if company has granted loan to a director, it is treated as deemed dividend even if the loan is repaid before the year end.

Now my question is, if the company has taken a loan from a director first and then the company is repaying the loan before the year end. Then are those payments treated as deemed dividends?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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09 September 2014 Repayment of loan taken from director does NOT amount to loan or advance as envisaged by Section 2(22)(e).

Accordingly such repayment will NOT amount to deemed dividend.

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Vijay Krishna

Vijay Krishna (Querist)
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09 September 2014 @siddhartha Bhardwaj: Thank you

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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10 September 2014 You are welcome. You should use the thanks button to convey your thanks.

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