Loan given by private co. to others
This query is : Resolved
PALLAVI SOMANI
(Querist)
08 September 2012
HEY FRIENDS.....
PLS LET ME KNW WHETHER PRIVATE CO. CAN GIVE LOANS TO OTHERS.....?
PLS LET ME KNW WHETHER PRIVATE CO. CAN GIVE LOANS TO OTHERS.....?
CA CS PRASHANT
(Expert)
08 September 2012
Yes a private company can very well give loan to others..
Section 372A of companies act 1956 will be applicable if that other is a subsidiary of the main company.
Section 372A of companies act 1956 will be applicable if that other is a subsidiary of the main company.
CA Ayush Agarwal
(Expert)
08 September 2012
Can't Give to Share Holders Holding 10% of Shares in That Company, or Substantial Interest in That Firm, Otherwise Section 2(22)e of Income Tax Comes in Exist.
Also Any Loan Given to Related Party Require Disclosure as Per AS 18 Related Party Disclosure Issued by Our ICAI & Books Need to Maintain if CARO is Applicable.
Also Any Loan Given to Related Party Require Disclosure as Per AS 18 Related Party Disclosure Issued by Our ICAI & Books Need to Maintain if CARO is Applicable.
Guest
Guest
(Expert)
08 September 2012
Before giving loan, we should avoid the applicability of deemed dividend u/s 2 (22) (e) as replied by ayush ji.
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
- Capital Gail Exemption Certificate
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- TDS on Fixed Assets purchased
- Import of Software Service.
- Oct 2025 Invoices
- GST on Renting godown to KFCSC for Storage of Raagi
- 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
