treatment of deemed dividend
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 August 2010
a pvt ltd co.has accumulated profits of Rs.75000 as at 31-3-09.during current year,the company has earned Rs.45000 as profit.
a co. has given Rs.200000 instead of Rs.100000 as directorial remuneration to a director who has 50% interest in the company. this means a director has excess of Rs.100000 extra.what should be the treatment of this Rs.100000. and in whose hands it will be taxable.what should be the accounting treatment.
a co. has given Rs.200000 instead of Rs.100000 as directorial remuneration to a director who has 50% interest in the company. this means a director has excess of Rs.100000 extra.what should be the treatment of this Rs.100000. and in whose hands it will be taxable.what should be the accounting treatment.
11 August 2010
Taxable in the hands of Director. Subject to Maximum of reserve and surplus of Company.
In this case entire Rs.100000/- will be added to the income of Director as Deemed Dividend u/s 2(22)(e).
In this case entire Rs.100000/- will be added to the income of Director as Deemed Dividend u/s 2(22)(e).
11 August 2010
Also refer following article on deemed dividend---
https://www.caclubindia.com/articles/deemed-dividend-section-2-22-e-of-income-tax-act-1961-6121.asp
https://www.caclubindia.com/articles/deemed-dividend-section-2-22-e-of-income-tax-act-1961-6121.asp
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