banner_ad

loan given to director

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
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.
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
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.
Profile Image

Jayashree S Iyer

Profile Image

Jayashree S Iyer (Expert)
31 January 2011 Agree with Warrierji.
Profile Image

Sunil Kr. Sanganeria

Profile Image

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
Profile Image

udit sharma

Profile Image

udit sharma (Expert)
01 February 2011 Agreed with Sunil Sir!

God Bless

CS Udit Sharma
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

Delhi

CA Inter

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details