22 September 2009
Mr. X is karta of HUF. Mr.X is director and shareholder holding more than 10% shareholding in a company. The company gives loan to the HUF. Does this amount to deemed dividend u/s 2(22).
23 September 2009
Yes it will be deemed dividend u/s 2(22)e. U/s 2( 22) e when a company gives a loan or advansed to a person who hold more than 10% shareholding in that company or a concern in which that person hold substancial interest then it will be deemed dividend u/s 2(22)e.
CAclubindia
