Loan Taken by Director from Company

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pradip roy (Querist)
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18 March 2010 Dear friends

Pls. guide me, its urgent.... march is near..

Loan taken from a pvt. ltd. company by the director of the company during the financial year is taxable?

Is there any limits of loan amount?

Rasesh

Rasesh (Expert)
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18 March 2010 if Sec 2(22)(e) - deemed dividend gets attracted, then yes, it is taxable as dividend.

There is no such limit.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 March 2010 There is a limit,to the extend of accumulated profits of the company subject to the satisfaction of other conditions, as rightly said by Rasesh sir,as in section 2(22)(e) of the Income tax Act,1961.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 March 2010 AGREE WITH EXPERTS. BUT IF THE COMPANY IS A NBFC AND MORE THAN 20% OF ITS INCOME IS FROM INTEREST RECEIVED ON LOAN GIVEN AND THE COMPANY HAS CHARGED INTEREST ON LOAN GIVEN TO DIRECTOR THEN SEC 2(22)(e) WILL NOT BE ATTRACTED. YOU ALSO HAVE TO LOOK AT THE SHAREHOLDING OF DIRECTOR IF IT IS LESS THAN 10% 2(22)(e) WILL NOT BE ATTRACTED.

pradip roy

pradip roy (Querist)
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19 March 2010 Thanks Sir

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