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Deemed Dividend
Can a Private Limited Company give loan to wife or son of Director Shareholder having more than 10 % voting power
Replies (4)
Yes,. it will not be deemed dividend, but check compliance under comapnies act
No sir.
As per amendment in Companies Act 2013, Private Limited companies are prohibited to give loan to self Director and his\her relatives irrespective of voting power percentage.
The question of deemed dividend hence does not arise.
As per amendment in Companies Act 2013, Private Limited companies are prohibited to give loan to self Director and his\her relatives irrespective of voting power percentage.
The question of deemed dividend hence does not arise.
As per Section 185 of Companies Act director loans arre allowed only by way of special resolution. Further as per Section 2(22)(e) of IT Act if the director or relative hold more than 10% voting power then it is taxable as per Income Tax act as per deemed dividend
Kalpesh, under an amendment (refer my reply) section has since been amended. Please double check before posting. Good luck for your studies.
Now it is prohibited .
Now it is prohibited .
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