5 Replies
Manish Manu
(198 Points)
Replied 10 November 2018
Generally dividend is distribution of profit of the company to its shareholders.
Deemed dividend refers to the situation when the closely held company distributes its fund in form of loans or advances to its equity shareholders (holding 10% or more voting right) or to any concern in which such shareholder is a member or partner holding a substantial interest.or on behalf, or for the individual benefit of such shareholder. Then the amount of loan or advances given by the company will be treated as deemed dividend.
Deemed dividend refers to the situation when the closely held company distributes its fund in form of loans or advances to its equity shareholders (holding 10% or more voting right) or to any concern in which such shareholder is a member or partner holding a substantial interest.or on behalf, or for the individual benefit of such shareholder. Then the amount of loan or advances given by the company will be treated as deemed dividend.
santhuamma415@gmail.com
(223 Points)
Replied 10 November 2018
to what extant it is deemed to dividend full loan amount ?? Please explain
santhuamma415@gmail.com
(223 Points)
Replied 10 November 2018
Ok sir / mam if accumulated profits are not there then ?
Manish Manu
(198 Points)
Replied 10 November 2018
Deemed dividend u/s 2(22)(e) is considered to the extent to which the company have accumulated profit. If the company doesnt have any accumulated profit then deemed dividend u/s 2(22)(e) is NIL
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