Mr. K, Managing Director of Kairon Metals Private Ltd, holds 70% of its paid up capital of 20 lakhs. The balance as at 31.03.2023 in General Reserve…

Mr. K, Managing Director of Kairon Metals Private Ltd, holds 70% of its paid up capital of 20 lakhs. The balance as at 31.03.2023 in General Reserve was 7 lakhs. The company on 01.04.2023 gave an interest-free loan of 8.50 lakhs to its Supervisor having salary of 15,500 p.m., who in turn on 25.04.2023, advanced the said amount of loan so taken from the company to Mr. K. What amount would be treated as deemed dividend u/s 2(22)(e) of the Income-tax Act, 1961?