Dr balance in director account in pvt. ltd.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2012 Dear sir,

XYZ Pvt. LTd.

has account of one of his director MR. X as follows:

Unsecured Loans
Mr. X : DR. 6,10,000/-

what will be effect of this.

can the company do so ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 April 2012 If the company had accumulated profits Rs.6.10 lakhs or the accumulated profit whichever is less will be treated as deemed dividend in the hands of the Director subject to the conditions of section 2 (22) (e ) of the Income tax Act,1961.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2012 If the company has loss of Rs. 8.57 than ?

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