Loans & Advances by closely held company deemed as Dividend [Sec. 2(22)(e)]

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....being the beneficial owner of shares ii. holding not less than 10% of voting power * or i.to any concern in which such shareholder is a member or a partner and in which he has a substantial interest * or i. to any person on behalf of or for the individual benefit of such a shareholder * to the extent to which the company possesses accumulated profits. Notes: * Following conditions m....

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....bility of section 2(22)(e). Section 2(22)(e) is also attracted if company charges market rate of interest from shareholder. Company is required to deduct 10% TDS on deemed dividend under section 2(22)(e). Even advance rent or any other advance given to such shareholder is deemed dividend under section 2(22)(e). AMENDMENT BY FA 2018 wef 1/4/2018 * In the case of an amalgamated company, the....