Libra P. Ltd. engaged in trading activity had accumulated profits of ₹ 15,00,000 as on 1.4.2020, Mr. Gautam having 30% of the equity shares and voting rights in the company received ₹ 5 lakhs as loan on 1.6.2020 from the company. The loan was repaid by him on 30.11.2020. The amount liable to tax in the hands of company u/s 115-0 as deemed dividend is –
A. ₹ 4,50,000
B. ₹ 15,00,000
C. Nil
D. ₹ 1,50,000
Answer:C
Libra P. Ltd. engaged in trading activity had accumulated profits of ₹ 15,00,000 as on 1.4.2020, Mr. Gautam having 30% of the equity shares and voting rights in the company received ₹ 5 lakhs as loan on 1.6.2020 from the company. The loan was repaid by him on 30.11.2020. The amount liable to tax in the hands of company u/s 115-0 as deemed dividend is –
A. ₹ 4,50,000 B. ₹ 15,00,000 C. Nil D. ₹ 1,50,000