deemed dividend
This query is : Resolved
30 January 2010
Any loan/advance by ABC P. Ltd. to a person who has substantial interest (10% holding) in ABC is deemed dividend. Is this correct?
Also any loan/advance to a concern of which this person is a member or a partner having substantial interest is deemed dividend.
What if loan/advance is given by ABC to a company where this person is merely a director (without any substantial interest)? Is it still deemed to be dividend?
Please help.
Also any loan/advance to a concern of which this person is a member or a partner having substantial interest is deemed dividend.
What if loan/advance is given by ABC to a company where this person is merely a director (without any substantial interest)? Is it still deemed to be dividend?
Please help.
01 February 2010
First is Correct, it will be Deemed dividend u/s 2(22)(e).
Second is also correct under same section.
Third: It is given that in that case Certain shareholder should be having Substantial Interest[sec 2(34)] any any time during the pervious year, but if that person is merely director then deemed dividend section will not be applicable here.
Regards!!!
Second is also correct under same section.
Third: It is given that in that case Certain shareholder should be having Substantial Interest[sec 2(34)] any any time during the pervious year, but if that person is merely director then deemed dividend section will not be applicable here.
Regards!!!
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