Deemed Dividend - Sec 2(22)(e)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 June 2011
Hello friends
Pls see the question below if you can help me out
If a shareholder holding substantial interest in a closely held co. is attracted by the provisions of this Section in the following circumstances.
F.Y. 2010-11
Loan given to the company by shareholder - Rs. 1 crore
Loan repaid by the company - Rs. 50 lakhs
Loan payable by the company - Rs. 50 lakhs
My question is whether Rs. 50 lakhs repaid by the company to the director holding substantial interest attracted by the provisions of Sec 2(22)(e)
Pls see the question below if you can help me out
If a shareholder holding substantial interest in a closely held co. is attracted by the provisions of this Section in the following circumstances.
F.Y. 2010-11
Loan given to the company by shareholder - Rs. 1 crore
Loan repaid by the company - Rs. 50 lakhs
Loan payable by the company - Rs. 50 lakhs
My question is whether Rs. 50 lakhs repaid by the company to the director holding substantial interest attracted by the provisions of Sec 2(22)(e)
01 June 2011
Deemed dividend is attracted when the amount is given as loan by the company to the shareholder and not when loan given to the company by shareholder.
For details see below article---
https://www.caclubindia.com/articles/details.asp?mod_id=6121
For details see below article---
https://www.caclubindia.com/articles/details.asp?mod_id=6121
Message likes :
1 times
01 June 2011
Sanjay Gupta sir's opinion is correct
Message likes :
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Querist : Anonymous
Querist :
Anonymous
(Querist)
02 June 2011
Sir my question is that is Rs. 50 lakhs repaid by the company attracted by the provisions of Sec 2(22)(e)
02 June 2011
No. Section 2(22)(e) would not be attracted as company has repaid out of what Co received from the shareholder.
02 June 2011
Repayment as mentioned above do not attract sec 2(22(e).
02 June 2011
In your situation Sec 2(22)(e) is not applicable
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