Income from investment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2011 A private limited company invested some money in a proprietorship firm.Income of the company from this investment in form of interest is more than income from normal operation of the company.Is there any provision in the companies act or In It act against this view.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

20 August 2011 This means you have diverted the funds of the company and earned interest by lending the money. If it is landed to directors then companies act 298, 301 etc. will come.

Section 40A(b) of IT act will also come in picture if you charges less interest on money landed to directors etc

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok