intt. free Loans given & loans taken from director
This query is : Resolved
02 July 2009
Hi
Can a company arrange interest free loans from directors, his realtives and freinds.
what are the legalities to be maintained?
what are the circumstances of its denial by IT department.
Thanks
Can a company arrange interest free loans from directors, his realtives and freinds.
what are the legalities to be maintained?
what are the circumstances of its denial by IT department.
Thanks
02 July 2009
When you collect interest free loans from directors, his friends and relatives from the point of view of company there is no problem. But the ito will include deemed interest income which has escaped assesment and can tax accordingly in individual return. And also it leads to unnecessary suspicion why interest free loan is granted to the company and what are the indirect benefits they are eligible.
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
- Reopen of assessment proceeding
- Is any professional CA is here please reply
- EPF FULL & FINAL RULES IN 2026
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Rental income gst and it purpose
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Gift Received from nonblood relative
- Putting a heading on received mail
- Section 50-fixed asset-->building ceases to exist
- Fixe term employment
- 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
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- 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
