loan given to director
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 January 2011
Is there any restriction on a director of a pvt ltd co to receive any loan from the company in cash or kind.
31 January 2011
Section 295 of the Companies Act,1956 says about loan to directors. But this section is not applicable to Private Limited companies.
If the company have accumulated profits, the said loan will be treated as deemed dividend under section 2 (22)(e) of the IT Act,1961 and will be assessed in the hands of the said director.
If the company have accumulated profits, the said loan will be treated as deemed dividend under section 2 (22)(e) of the IT Act,1961 and will be assessed in the hands of the said director.
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Jayashree S Iyer
(Expert)
31 January 2011
Agree with Warrierji.
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Sunil Kr. Sanganeria
(Expert)
31 January 2011
In my opinion, if that director does not hold 10% shares of that Company, Section 2(22)(e) of the It Act will not get attract
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udit sharma
(Expert)
01 February 2011
Agreed with Sunil Sir!
God Bless
CS Udit Sharma
God Bless
CS Udit Sharma
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