Director loan
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 August 2013
the director is giving a loan to company at 15% interest whether company can claim the interest as expense
Jai Hind
Jai Hind
Ajay Mishra
(Expert)
21 August 2013
hi
Why not, the company can take loan with the approval of the Board.
Why not, the company can take loan with the approval of the Board.
Message likes :
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Ganeshbabu K
(Expert)
21 August 2013
But is it fair to take interest of 15% where as banks we can get 13.5% to 14% or we may get lower than this
Auditors will disclose this in Tax audit report section 40(A)2 and AO will disallow the same if interest rate is more than prevailing market rates
TDS also applicable on interest payment to director
Auditors will disclose this in Tax audit report section 40(A)2 and AO will disallow the same if interest rate is more than prevailing market rates
TDS also applicable on interest payment to director
Message likes :
1 times
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