Section 2(22)(e)

Radhika Chitlangya (Profeesion) (36 Points)

08 December 2011  

As per section 2(22)(e), whenever loans or advances are granted by a closely held company to a shareholder having a substantial shareholding, it will be taxed as deemed dividend..bt when the person obtains loan from the company before becoming shareholder, it won't attract 2(22)(e)..so does this option act as loophole in the provision..??