Loan to a firm , director interested
This query is : Resolved
07 December 2010
what would be the consequences under income tax if a compny gives loan to a firm in which one of the director is interested.
director holds less than 10% sharers in the company & more than 20% profit sharing in the firm.
WHETHER NOTIONAL INTEREST WILL BE CONSIDERED IN THE HANDS OF COMPANY IN THE ABOVE TRANSACTION.
Plaese reply quickly.
with regards
director holds less than 10% sharers in the company & more than 20% profit sharing in the firm.
WHETHER NOTIONAL INTEREST WILL BE CONSIDERED IN THE HANDS OF COMPANY IN THE ABOVE TRANSACTION.
Plaese reply quickly.
with regards
07 December 2010
Whereas there would not be any problem from deemed dividend point of view but of interest free loan is given then the proportianate interest attributable to the loan could be disallowed.
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