Shareholding of Directors

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CS Vandana Kacholia (Querist)
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09 July 2009 If shareholding of one of the directors increases more than 10% in a private company then what will be consequences and any remedy for that??

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Vandana

NITIN

NITIN (Expert)
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09 July 2009 Form 2 is require to file only

CS Vandana Kacholia

CS Vandana Kacholia (Querist)
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09 July 2009 I have asked this question from income tax point of view i.e. whether it will be considered deemed dividend or somthing else??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 July 2009 In such a situation,if any payment is made to that shareholder and if the company is a profit making company or has accumulated profits, that particular payment will be treated as deemed dividend.

For full details your attention is invited to section 2(22)(e) of the Income tax Act,1961 in www.incometaxindia.gov.in

CS Vandana Kacholia

CS Vandana Kacholia (Querist)
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09 July 2009 Thanks a lot Sir for clarification.

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