Deemed Dividend

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21 Points Posted on 04 December 2019
Can a Private Limited Company give loan to wife or son of Director Shareholder having more than 10 % voting power
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On 04 December 2019 at 15:11 Report
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48 Points Posted on 04 December 2019
Yes,. it will not be deemed dividend, but check compliance under comapnies act
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On 04 December 2019 at 20:12
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10683 Points Posted on 04 December 2019
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.
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On 04 December 2019 at 22:34
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student
38 Points Posted on 05 December 2019
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
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On 05 December 2019 at 18:08
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10683 Points Posted on 05 December 2019
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 .
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On 05 December 2019 at 20:35

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