It is YOU who decides

you-thought

Just a thought to add to the aforesaid post that was made on Facebook, just a few moments ago. I know what I am going to say will sound very philosophical to the reader of this article, but that is besides the point. What is important to note, however, is that we are living in a system that drills into our heads that what you think is the only thing that can be correct for you. But this is a gross fallacy, and the reason why I am writing about it, is because I have fallen foul in many people’s thoughts, simply because I choose to be forthright and blunt because of my sun sign “Sagittarius”. Not a very great believer of astrology or readings of the stars, but at the same time, I do not make fun of it. On the lighter side, I can add that being a “Fire” sign sure lights many a fire in all the wrong places that one can imagine !!

Indeed, it is YOU who decides the fate of many a person whom you meet on your journey of life. So this is just a general thought that cannot point towards anyone specifically, because life has taught me well to always be positive. In the ultimate analysis, the only person who really loses anything at all in making any kind of judgement about any other person who walks the face of this Earth, is YOU YOURSELF.

So to all my friends, readers and well-wishers across the globe, it is a piece of sage advice, never judge a person by only his words or only his looks or only by what comes first to your mind in just one meeting. Remember, first impressions are usually the lasting impressions – and also, the cold hard fact is that the good that men do is often forgotten easily, its the bad things that have an unfortunate habit of staying alive in your brain.

Cheers and have a good day ahead of you. Thanks for the patient reading of my humble thoughts.

CA VIKRAM S. MATHUR
17-Feb-2017 | 00:00 Hours IST

Supreme Court Rules – Deemed Dividend

This Tax Alert summarizes a recent ruling of Supreme Court of India (SC) in the case of Gopal and Sons (HUF) (Taxpayer) on the issue whether advance received by the Taxpayer from Indian Company wherein the Taxpayer’s Karta is a registered shareholder can be regarded as deemed dividend under the provisions of the Indian Tax Laws (ITL).
The ITL provides for deemed dividend taxation in respect of payment by a closely held company by way of advance or loan given to (a) a beneficial shareholder holding not less than 10% of the voting rights in such company; or (b) any concern in which such shareholder (viz. holding 10% or more voting power) is a member or a partner and such shareholder has a substantial interest (20% or more) in the said concern.
The Taxpayer contended that it was neither the beneficial shareholder nor the registered shareholder of ICo as the shares were issued in the name of Karta and, hence, the deemed dividend provisions of the ITL is not applicable.
SC, however, held, deemed dividend provision is attracted in present case as the Taxpayer is a concern in which shareholder (Karta) has a substantial interest. Thus, the payment received by the Taxpayer from an Indian company (ICo), is deemed dividend under the provisions of the ITL.
SC held that a loan given to a concern can also constitute dividend if a shareholder has substantial interest. SC noted that the Karta in whose name shares were registered has substantial interest in the income of the Hindu Undivided Family (HUF) and that this proposition was not in dispute. SC, therefore, concluded that the loan was given to a concern and, hence, the loan can be considered as deemed dividend.