Q.25- Mr. Santa is director in Santa Banta ltd.(A Manufacturing - TopicsExpress

Q.25- Mr. Santa is director in Santa Banta ltd.(A Manufacturing Co.). He hold 30% Share in Co. As on 1.11.2013 he took a loan from Co. For Rs. 10,00,000/-. On the same date Co. Has a accumulated profit of 15,00,000/- in its books. Out of loan taken, Rs. 6,00,000 has been repaid by Mr. Santa before 31st March 2014 & Futher taken a loan on 01.02.14 For Rs. 3,00,000/-. Mr. Banta(40% Holding) has also taken a loan from Co. as on 01.01.2014 For Rs. 3,00,000/- You have to decide what will be the amount of Divided u/s 2(22)(e) For Mr. Santa. A] Rs. 4,50,000/- {30% Of Accumulated Profit} B] Rs. 7,00,000/- {Total loan taken-Repaid before 31.03.14} C] Rs. 13,00,000/- (Total loan Taken) D] Rs. 12,00,000/- (Total Accumulated profit-Loan Given to Other Diector) Please Give your ans. With legal support.

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