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deemed dividend
when a company A gives loan to company B and company B is a stake holder of more than 10% in company A. can this loan be termed as deemed dividend u/s 2 22 e in the hands of B. urgent reply is solicited....thanks in advance
Replies (3)
Deemed dividend provisions are applicable only to closely held companies (i.e., companies in which public are not substantially interested).
So please ensure that the same is not public company before treating the same is deemed dividend.
So please ensure that the same is not public company before treating the same is deemed dividend.
yes company B is a private company
The reserves of Company A as on the date of grant of loan has also to be taken into account before treating the same as deemed dividend u/s 2(22)(e)
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