M/s. Large Scale Co. Ltd. has accumulated profits of Rs.100 lakhs as on 31.3.2009. The company has incurred losses of Rs.40 lakhs upto 30.9.2009. Mr. A holds 60% equity of the said company and Mr. B holds 30% of the equity. The company has given an advance of Rs.50 lakhs to Mr. A in October 2009 which was fully returned back by Mr. A in December, 2009. Thereafter the company gave Rs.50 lakhs advance to Mr. B. What would be deemed dividend in the hands of Mr. A and Mr. B.?
Menu
deemed Dividend
Replies (1)
DEAR MOHAMMED,
Since irt is aPublic company, i m asssuming it as acampany in which public is not substanially interested-
In October entire 50 Lakhs is treated as "Deemed Dividend in the hands of A, since balance of profits would be Rs. 60 Lakhs,
Now, at the time of loan to B - 10 LAKHS +/- Profits/Loss for Oct, Nov & December will be treated as deemed dividend
Recent Topic
- AIS UTILITY
- NPS Premature withdrawl -Tier 1 Account
- Provident fund taxation
- ITR3 AY 26-27 Error in filling status
- Queries on TDS as per IT
- Capital Gains set off on Sale of Land if held for
- ITR Form for income from freelance consultancy
- Gst rate for HSN code 28530010
- Health Insurance
- India GST Mobile App
Related Topics
CAclubindia
