Deemed dividend rules for closely held company loans and advances extend to shareholder-linked concerns and accumulated profits. A payment by a closely held company by way of loan or advance is treated as deemed dividend to the extent of accumulated profits where the shareholder is the beneficial owner of shares carrying not less than 10% of voting power, or where the payment is made to a concern in which such shareholder is a member or partner with substantial interest, or to any person for the individual benefit of such shareholder. Repayment of the loan does not affect applicability, and charging market-rate interest does not prevent the provision from operating.