23 September 2010
Our company is Pvt. Ltd. both directors are familiy member.
Now my question is, if director borrow funds except than their remuneration fixed, will it attracts dividend tax. If yes what would be the rate of tax.
23 September 2010
Deemed dividend u/s 2(22)(e) liable if the company is having reserves. TDS dedductible u/s 194 and taxable in the hands of the shareholder at the slab rate applicable.