Can some one guide me: Can a shareholder of private limited company take advances or loans.. if yes then what is format of passing resolution..
please guid on above at earliest.
Rakesh (Director) (32 Points)
28 September 2012Can some one guide me: Can a shareholder of private limited company take advances or loans.. if yes then what is format of passing resolution..
please guid on above at earliest.
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 28 September 2012
Yes, He Can Take Loan Advance as Far as Companies Act is Concerned.
But Under Income Tax Act, It Shall be Deemed as Deemed Dividend u/s 2(22)(e).
& Taxable to Shareholder as Income.
CA Manish
(Job)
(5264 Points)
Replied 28 September 2012
Originally posted by : CA AYUSH AGRAWAL | ||
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Yes, He Can Take Loan Advance as Far as Companies Act is Concerned. But Under Income Tax Act, It Shall be Deemed as Deemed Dividend u/s 2(22)(e). & Taxable to Shareholder as Income. |
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Provided that the Shareholders holds not less than 10% of the voting power. If a share holder holds less than 10% of voting power than it wont be considered as deemed dividend.
Correct me if i am wrong.
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 28 September 2012
Originally posted by : CA Manish Malu | ||
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Originally posted by : CA AYUSH AGRAWAL Yes, He Can Take Loan Advance as Far as Companies Act is Concerned. But Under Income Tax Act, It Shall be Deemed as Deemed Dividend u/s 2(22)(e). & Taxable to Shareholder as Income. Provided that the Shareholders holds not less than 10% of the voting power. If a share holder holds less than 10% of voting power than it wont be considered as deemed dividend. Correct me if i am wrong. |
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Yes, Manish U R Rite, I Forgot to Add These Lines.
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