Directors taken loan from company

Loan taken by directors doesn't amount to deemed dividend, because dividend is paid to shareholders and not the directors of the company .

Also note that sec 185 prohibits company from giving any kind of loan to directors.
Loan can only be given to directors in following cases :
1. It is provided to managing or whole time director as a part of their services and such benefit is also provided to all it's employees
2. Company has brought any scheme to provide loan which has been approved by members by a special resolution
3. It is main business of company to provide loan

If any of 3 above mentioned situation is not there, then it is prohibited to give loan to directors.

closed held private limited companies normally operate without considering the above implications when it is not repaid can it be taken as deemed dividend and taxed accordingly

what is the instant of deemed dividend in a private company