Interest charged from director relative

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Umakant Tripathi (Querist)
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14 September 2011 Dear Sir,

I want to know that, will be give interest to director relative if director relative giving a loan to director of that(pvt.Ltd co.)and plz confirm me also director relative can give a loan of Rs. 10,00,000/-of director of that co.(pvt.Ltd.co.)
plz suggest me,

Regards,
U.K.Tripathi

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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14 September 2011 If the director takes loan on his personal name then it relates to the director not to the company. In case company taking loan from the director relative then the question arises in such case you can do so but you have to disclose in the director's report with the relationship and loan accepted/given and interest paid/charged.
OM SAI SRI SAI JAI JAI SAI

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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14 September 2011 You can take loan and pay interest on it to director's relative.

Abhishek Ranjan Singh
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