Can a shareholder of pvt ltd company take advances or loans

Yes, He Can Take Loan Advance as Far as Companies Act is Concerned.

But Under Income Tax Act, It Shall be Deemed as Deemed Dividend u/s 2(22)(e).

& Taxable to Shareholder as Income.

Originally posted by : CA AYUSH AGRAWAL
	Yes, He Can Take Loan Advance as Far as Companies Act is Concerned. But Under Income Tax Act, It Shall be Deemed as Deemed Dividend u/s 2(22)(e). & Taxable to Shareholder as Income.

Provided that the Shareholders holds not less than 10% of the voting power. If a share holder holds less than 10% of voting power than it wont be considered as deemed dividend.

Correct me if i am wrong.

Originally posted by : CA Manish Malu
	Originally posted by : CA AYUSH AGRAWAL Yes, He Can Take Loan Advance as Far as Companies Act is Concerned. But Under Income Tax Act, It Shall be Deemed as Deemed Dividend u/s 2(22)(e). & Taxable to Shareholder as Income. Provided that the Shareholders holds not less than 10% of the voting power. If a share holder holds less than 10% of voting power than it wont be considered as deemed dividend. Correct me if i am wrong.

Yes, Manish U R Rite, I Forgot to Add These Lines.

also TDS will be liable to be deducted on the same