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dividend u/s 2 (22) e

This query is : Resolved 

12 August 2010 If a pvt ltd company gives adance against salary/ TA Advance/Other advances for expenses to its shareholder cum director, will that be covered u/s 2(22) e ?

12 August 2010 VISIT THIS LINK
https://www.caclubindia.com/articles/deemed-dividend-section-2-22-e-of-income-tax-act-1961-6121.asp

12 August 2010 Since the payments referred in the query is not for the individual benefit of the person concerned, provisions of section 2(22) (e) will not attract.


12 August 2010 It will not be treated as deemed dividend as the advances are meant for official expenses.

And, regarding advance salary, the treatment is altogether different & will not be covered under 2(22)(e)



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