Interest on unsecured loan
This query is : Resolved
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 ?
and what rate ?
CA CS Amit S. Kedia
(Expert)
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.
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 :
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CA Kishore Tallam
(Expert)
10 April 2012
Agree with expert.
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