payment made by company to its directors would amount to deemed dividend u/s. 2(22)(e)
i have a debit balance in directors account as payment made by company to its directos, what can i do to eliminate that debit balance so that provisions of sec. 2(22)(e) would not apply , is there any way out??
Dear
you have two ways
1. show it as salary to directors and claim as expenses in P & L
2. Treat it as a reimbursement of expenses and claim in P &L but supporting documents of expenses should be there in place with company to prove.
but sir if i treat it as salary then it will attract tds provisions
am i right??
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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