Loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2010 Hi Friends

I have urgent query about Loan. One of the company employees requesting for personal loan from company, presently he is drawing more then one lakhs. Please tell as per law (as per IT Dept and Company Law)can company allow loans to employee? If it ok then what is the limit? Can we charge interest? If employee unable to reimburse loan then how to recollect to them?

Rasesh

Rasesh (Expert)
Follow

26 May 2010 Loans can be given to employees who are not directors. There is no specific limit under the law. Rate of interest and other terms may be decided by the company as per its internal policies. For re-collecting as well, the company may have its own policies.

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2010 Hi Sir

Thank you, is this taxable to employee? or Company?

Rasesh

Rasesh (Expert)
Follow

27 May 2010 The loan would be treated as a loan only and not a perq. Hence, the question of taxability on the company or the employee does not arise.

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

Sameer

Suman Lata Saraswat

kesav

Sabyasachi Mukherjee

CA Damodaram

Subscribe Now

Loan

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

GST CONSULTANCY

CA Final

Manager- Finance and Compliance

Accountant

GST CONSULTANT