Registration deemed dividend

Dear Frnz, 

It is a Case of an individual who is a director in a company and in a a.y. 2007-2008 his current a/c balance with the company was credit at the closing date. But the commissioner is asking for tax as during the year once the balance reached to debit and he is treating it as a deemed dividend and asking for paying tax with interest and penalty.

Pls tell me when the closing balance is credit and the assessment of the company has been over, they could demand to shareholder to pay tax on such amount.

Pls guide us.

Regds,

JMD

Replies (3)

DEEMED DIVIDEND PROVISION WILL BE CAPLICABLE SINCE REPAYMENT OF MONEY WILL NOT LET THE ESCAPE FROM DEEMED DIVIDEND.

If Company paid loan to directors is deemed to be dividend U/S 2(22)(e). The same is taxed in the hands of Director.

YES INCOME WILL BE TAXABLE IN THE HANDS OF DIRECTOR , COMPANY WILL BE PENALISED FOR NOT DEDUCTING TDS.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details