CA. Rashi Goyal (Chartered Accountant) (512 Points)
14 December 2010Hi,
A company "A" is having accumulated losses of Rs.10.00 Crores on 31.03.2010. It's 100% shares are hold by "B". On 01.12.10 "C" purchsed 100% shares from "B". During the financial year the company earnes a profit of 2.00 crores.
On 15.12.10 the company advances Rs.5.00 crores to "C". Will this 5.00 crores amount to deeemed dividend under income tax act.
Regards,
Rashi Goyal
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 16 December 2010
Please help wheather the laon of Rs.5.00 laks be treated as deemed divident for calculating the tax liability of "C".
Regards,
Rashi Goyal
M .K. Jha
(CA Final)
(484 Points)
Replied 16 December 2010
Dear Rashi,
In my opinion it must be Deemed dividend and taxable @ 30%....
But you must to ensure yourself from more experts at CA Clubindia
CAclubindia
