Loan from Directors and Members of pvt.ltd. company
This query is : Resolved
14 June 2011
What are requirements to be fulfilled for raising loans from directors or members of a pvt.ltd company?
What if loan is higher than paid up capital of company? is there any cap on interest payable in such cases?
What if loan is higher than paid up capital of company? is there any cap on interest payable in such cases?
15 June 2011
There no such formalities except passing a resolution in the Board of Director's meeting for accepting loan from the directors as well as the shareholders.
There is also no limit for interest rate to be paid to the directors and shareholder but the same should be reasonable. As per the Income Tax Act Section $0A(2) this is to be reported and if the assessing officer finds the same in excess the same shall be disallowed and the company has to pay the tax on the same with interest.
C. A. S. S. Agarwal, Mumbai
09870243410
There is also no limit for interest rate to be paid to the directors and shareholder but the same should be reasonable. As per the Income Tax Act Section $0A(2) this is to be reported and if the assessing officer finds the same in excess the same shall be disallowed and the company has to pay the tax on the same with interest.
C. A. S. S. Agarwal, Mumbai
09870243410
Message likes :
1 times
17 June 2011
Many thanks Mr. Agarwal for replying.
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
- GST on Restaurant service
- Section 271AAC
- Invoice Received but goods received on Later Date.
- Categories of FNO transaction
- Utilization of interest in TDS challan
- Audit applicability of ITR
- Income classification under heads of income under income Tax
- FD source of Income
- Salary Due for last Qtr neither paid employer nor shown in 26AS but reflecting in AIS for 2023-24
- Stock trading as Business
- Best Children Book Publishing Agency in USA
- Assistance Required for Filing Pvt Ltd Company (SPICe+ Part B)
- Dissoultion Deed
- Seeking correct information of my place of business in haryana
- Failure to appoint First Auditor by a Section 8 Company
- LTCG Calculation after de-merger of a Cos
- REGARDING GST NEW UPDATE OF GSTR-1 TABLE 12 (HSN)
- SALE TO E COMMERCE
- NEGATIVE LEDGER BALANCE
- Forgot HSN wise summary in March 2025
Trending Online Classes
-
Live Course on EPF & ESI Act - Mastercourse(With Govt Certificate)
Mr.Balamurugan Ranganathan16 June 2025
CAclubindia
