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query about taxability of amount given to daughter of direct

Tax queries 553 views 5 replies

A privated limited company has given a sum of Rs. 50,00,000 for the purpose of education to the daughter of a director to study in abroad....

whether these Rs.50,00,000 will taxed in hands of the daughter or director....

and whether the provisions of company law related to deemed divident will attract....

 

And what if the daughtet is going to serve for company in future for the sum of money given by company ?????

and also tell the tax related facts....

 

Replies (5)
Yes deemed dividend u/s 2(22)e will apply

Mr. Pradeep.

Nice question

S 2(22)(e) any loan or advance given to the director (assuming holding atleast 20% voting power in the company) shall be treated as dividend in the hands of director.

Now if you say it is given to daughter for she will be serving the company in the future, then S 17(3) becomes applicable. It shall be treated her income charged under the head salary

All these has to be proved.

Thanks

Thank You Very Much Sir....

sir,

is there any case law relating to this situation ?????

pradeep

for S 2(22)(e) there are many case laws where as for S 17(3) i think there may be case of coco cola or pepsi i do not remember. Though i have quoted the section u can search it.

thanks


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