14 December 2009
An advance has been given by a private company to a shareholder holding 25% shares and advance falls within the meaning of sec. 2(22)(e) of Income Tax Act. Please tell me what are the tax effect and whether sec. 271(1)(c) is applicable or not and any citation on this issue.
14 December 2009
The amount paid as an advance to the shareholder (upto the limit of accumulated profits in the hands of the company) will be taxable in the hands of shareholder.
For concealment of deemed income; penalty is applicable.
CAclubindia
