Set off of loan with dividend
This query is : Resolved
Guest
Guest
(Querist)
22 October 2010
A pvt ltd co granted loan to director(Holding 60% eq.shares).
Co. declared dividend and adjusted such loan with dividend
Query : is it taxable u/s.2(22)(e)
A pvt ltd co granted loan to director(Holding 60% eq.shares).
Co. declared dividend and adjusted such loan with dividend
Query : is it taxable u/s.2(22)(e)
22 October 2010
Another very peculiar situation. As per rule it should be treated as deemed dividend u/s 2(22)(e). But the loan given say Rs. 1 lac is adjusted against dividend declared Rs. 1 lac. In my view only Rs 1 lac will be taxable. Views of other experts also solicited.
23 October 2010
Loan to shareholder is deemed dividend u/s 2(22)(e)
- not liable to DDT u/s 115O but taxable in the hands of shareholder even if the same is repaid during the year
Dividend declared later u/s 2(22)(a)
- liable to DDT and exempt for shareholder u/s 10(34)
Adjustment/ set off will not alter the applicability of above
- not liable to DDT u/s 115O but taxable in the hands of shareholder even if the same is repaid during the year
Dividend declared later u/s 2(22)(a)
- liable to DDT and exempt for shareholder u/s 10(34)
Adjustment/ set off will not alter the applicability of above
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