Transfered co. to its shareholders

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Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2011 Pvt ltd Co.Transfered gold coin (as investment in the book of co.)to its shareholders (director)without consideration.pls advice about tax liability to the co. or director.(sec 56(2)(vii) applicable or not)

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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26 November 2011 In case of a private limited company the transfer of Gold Coin to the Shareholder Director of the Company will be taxed in the hand of Shareholder Director as Deemed Dividend upto accumulated profit of the company.The same will be taxed in hand of Shareholder Director.Section 2(22)(e) will be applicable.

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