Accumulated Profits with reference to Sec.2(22)e

Nishant (Accounts Assistant) (378 Points)

22 March 2011  

Dear Sirs,

                 1)  Please let me know as to what all items are included in "Accumulated profits--with respect to Sec.2(22)e-Deemed Dividend"

                  2) Will the Securities premium be included in accumulated profits for the purpose of Sec.2(22)e-Deemed Dividend"?

                  3)Suppose a Pvt. Ltd. Co. has advanced Rs.20,00,000  to one of it's directors having more than 10% Voting Power in it , and if the company has Cumulative Profit & Loss A/c balance has 30000, then what amount shall be taxed as 'Deemed Divedend' in the hands of the Director? (The company's share capital is Rs.1,00,000 and Sec. Premium Rs.40000)

                  Thanks