23 December 2010
If A Private limited company has given loan to it's Director and Director regularily repaid in time between months and set-off it's loan,there section 2(22)(e)applicable in that case for deemed dividend. If yes, than what is the taxability of the Director u/s 56 of Income Tax of India,1956.
23 December 2010
The provisions of deemed dividend are applicable to a share holder not to a director. If the share holder hold's more than 10% holding any to loan given to him is deemed dividend and TDS @ 194. Such income is taxed as income from other source in the case of such director.
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