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difference b/w director's current a/c & loan a/c

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2010 what's the difference b/w director's current a/c & loan a/c

company can show director's current a/c in their books? if company shows what is the impact

directors current a/c is showing credit or debit balance in company books, whether current a/c can be considered as loan & interest can be provided...?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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09 January 2010 The circumstances raised in the question may prove very RISKY because provisions of DEEMED DIVIDEND under Section 2(22)(e) of the Income-Tax Act may be applicable to the company.

Better first solve the abovementioned problem if it persists.

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