Interest on unsecured loan

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2012 Can we due interest on unsecured loan to a company director in a Pvt. Ltd. Co.
and what rate ?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

10 April 2012 If the private company is a subsidiary of holding company then Section 295 of companies act should be complied with.

If it is not the case, then loan may be given to directors of the private company.
Interest may be collected on such amount of loan.

Further, Section 2(22)(e)of Income tax act, 1961 treats such loan as deemed dividend to the extent of accumulated profit.if such director holds more than 10% shares in the company and is the beneficial owner of the same.

Message likes : 1 times

CA Kishore Tallam

CA Kishore Tallam (Expert)
Follow

10 April 2012 Agree with expert.

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

mohammad.asraf

yogesh korani

xavier

sinu kurian

SHIBSANKAR DEY

Subscribe Now

Interest on unsecured loan

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

Senior Executive

CA Final

GST CONSULTANCY

Accountant

GST CONSULTANT