Interest on unsecured loan
This query is : Resolved
CA BIREN SHAH
(Querist)
13 June 2012
Sir,
A private limited company has accepted unsecured loan form director and their relatives. Now is it compulsory for company to provide interest on loan accepted?
What will the consequence* if company do not pay interest to Director and their relatives?
(*Form Income tax and companies act point of view)
A private limited company has accepted unsecured loan form director and their relatives. Now is it compulsory for company to provide interest on loan accepted?
What will the consequence* if company do not pay interest to Director and their relatives?
(*Form Income tax and companies act point of view)
13 June 2012
There is no consequence if the company doesnt pay interest to an unsecured loan either as per IT Act or the Companies Act.,
13 June 2012
It is not compulsory to pay interest on unsecured loan.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- Non filing of I T Returns
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Oct 2025 Invoices
- Import of Software Service.
- GST on Renting godown to KFCSC for Storage of Raagi
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- TDS on Fixed Assets purchased
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
