22 November 2013
A person has fixed deposit in a bank.The same person is director in a company.The company has taken Occ limit against the fdr in the name of director. The interest paid on occ limit is debited as expense of Company and interest on fdr is credited in director's saving account. Kindly tell the consequences regarding Income Tax Act.
22 November 2013
there is no link between the two. Transactions entered into by the director in his personal capacity have no link with the company's interest liabilities.
22 November 2013
CAN COMPANY CLAIM INTEREST AS EXPENSE IN IT'S BALANCE SHEET. CAN IT BE DISALLOWED BY IT A.O.AS COMPANY HAS NOT MORTGAGED ANY PROPERTY AG. OCC LIMIT,HOWEVER THE DIRECTOR IS PAYING INCOME TAX ON INTT. EARNED
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