Allowability or disallowablity as per i.t act
This query is : Resolved
05 January 2013
One of my client being a private limited co.has issued shares to Directors HUF. For Example suppose there are 3 Directors i.e.Mother & their 2 Sons & each has formed their own HUF. First of all whether the same is valid as per Companies Act or not so far shareholder as HUF is concerned
Secondly if after becoming as Shareholder in the Status of HUF whether the Co.can take unsecured Loans from such HUF's as shareholder & can pay interest thereon.
If yes then the same is admissible as business expenses or not from Income Tax Point of view or any restrictions as per I.T Act as well as Companies Act point of view.
Secondly if after becoming as Shareholder in the Status of HUF whether the Co.can take unsecured Loans from such HUF's as shareholder & can pay interest thereon.
If yes then the same is admissible as business expenses or not from Income Tax Point of view or any restrictions as per I.T Act as well as Companies Act point of view.
06 January 2013
Please check whether the HUF's are properly created or not ?
.
Shares can be issued to HUF and there is no restriction for a Pvt Ltd Co. like it can not issue shares to the members of HUF or
to the HUF.
.
A pvt Ltd Company can take loans from its shareholders and pay interest on such loans.
.
The interest is allowable provided it is
a revenue expenditure and the amount has been utilised mainly for the purpose of the assessee company's business.
.
.
Shares can be issued to HUF and there is no restriction for a Pvt Ltd Co. like it can not issue shares to the members of HUF or
to the HUF.
.
A pvt Ltd Company can take loans from its shareholders and pay interest on such loans.
.
The interest is allowable provided it is
a revenue expenditure and the amount has been utilised mainly for the purpose of the assessee company's business.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Multiple payment of self assessment tax for A Y 2025-2026
- CAPITAL GAIN REDEVELOPED FLAT
- REGARDING ITR FILING QUESTION
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- Query regarding reporting of exempt foreign remuneration in ITR
- Correction in TDS return New Traces Portal
- TDS refund Indemnity Bond
- PF wage ceiling
- F&O reporting in ITR
- WHERE I SHOW GST 0% INVOICE IN GSTR1 (EITHER TABLE 7 OR TABLE 8)
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
