Deemed dividend

as per provision of sec 2(22) of income tax law, Loan or advance by person holding substantial share in company shall be deemed as dividend and company liable to pay CDT thereon irrespective of fact where loan has been paid by the director or not.

No i think u misunderstood the question. The loan was given by the director to company and now company wants to repay that. will it attract deemed dividend now? as there is no payment, Its repayment and as per general definition of payment, payment does not mean repayment.

Sorry,

no there is no deemed dividend, as Advance to director is deemed as Dividend not repayment of advance given by director to company as it is not advance so no Deemed dividend concept apply here. similier if any amount of Expense incurred by director on the behalf of company subsequently these amount is reimbursed by company to director is not deemed as dividend in hand of company.

Agreed. Repayment of loan/advance is not deemed dividend.

thnku for your agreement