Demmed dividend

In my opinion i dont think it will get covered if proper documents for the same have been produced and there is enough credit balance in their A/c to cover these transactions. 

It is to be noted that advance to DIRECTOR will not attract provision of Sec 2(22)(e) unless the Director is holding 10% or more voting power in private limited company. 

Advance to Directors for Foreign Tour:

It has been held in many judicial pronouncements that 

Phrase ‘ by way of advance or loan’ appearing in section 2(22)(e) must be construed to mean those advances or loans which a shareholder enjoys for simply on account of being a person who is beneficial owner of shareholding not less than 10 percent of voting power , but if such loan or advance is given to such share holder as a consequence of any further consideration which is beneficial to company received from such a share holder , such advances or loan cannot be treated to be deemed dividend with in the meaning of section 2(22)(e).

Hence, in your case the director has been given advance to spend on foreign tour expenses, which is ultimately the Company's liability, so it will not be covered under Sec 2(22)(e).

I dont understand payment on account of "medical claim covered".. Plz clarify.