08 October 2013
Yes , taxable as deemed dividend, if director is shareholder and his shareholding is more than 10% of total holding. please refer section 2 (22) (e) of Income Tax act.
08 October 2013
Deemed Dividend u/s 2(22)(e) is taxable in the hands of shareholder u/s 56 of the Income Tax Act and it is not taxable in the hands of company. Also Deemed Dividend u/s 2(22)(e) is not exempt u/s 10(33) of the Income Tax Act.
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