SECTION 2 22(E) DEEMED DIVIDEND

Tax queries 137 views 1 replies

Saurav

211 Points Joined January 2012

X company has shareholding in Y company 6% but they have common(Rajesh) shareholder having shareholding 30% in both company

X company has taken loan from Y company upto accumated profit whether section 2 22(e) attract to company Y beacuse of having common shareholding of rajesh

Replies (1)

Yes, sec 2(22) (e) will be applicable if loan given to Y Co.because of Mr.Rajesh ,as Mr.rajesh holding share more than 20%,

And in case if it only transaction between two Co. only there is no Role of Mr. Rajesh then it will not applicable as shareholding is less than 10%