Section 2(22)(e)

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Sunil Kr. Sanganeria (Querist)
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20 October 2010 A Private Limited Company has given loan on 05.10.2010 at Interest to an individual who is also shareholder of the Company. The individual has more than 12% shares in the Company till 01.10.2010. On 04.10.2010 ,Company issued further shares and the shareholding of the Individual reduced to less than 10%.

Would section 2(22)(e) of the Income Tax Act get attracted. If yes, cite any case law. if any

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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20 October 2010 If the shareholder is holding share above 10% during any time of the previous year , section 2(22)(e) will be applicable for dividend income.