Loan to company
This query is : Resolved
08 November 2017
Can a Director of Private Company give loan to the Company? and Can the relative of the Director give loan to the Company Directly? If Yes, Then what is the procedure to be followed?
08 November 2017
1. Director can give loan to the company.
2. Relative of director can also give loan to the company but it should not be more
than the paid up capital and free reserve of the company. Notification 464(E) dated 5.6.2015.
But in both cases from whom money is received, furnishes to the company at the
time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or
deposits from others and the company shall disclose the details of money so
accepted in the Board’s report. The relative need not be a shareholder
of the company. Notification dated 15.9.2015.
2. Relative of director can also give loan to the company but it should not be more
than the paid up capital and free reserve of the company. Notification 464(E) dated 5.6.2015.
But in both cases from whom money is received, furnishes to the company at the
time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or
deposits from others and the company shall disclose the details of money so
accepted in the Board’s report. The relative need not be a shareholder
of the company. Notification dated 15.9.2015.
Message likes :
1 times
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
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Traces submitting correction statement error
- ITR-3 File/Error Found
- Difff in ais receipts and gst turnover
- Banking Related Issue
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Gst on travel by air for business purposes
- Loss of interest in PF transfer from EPFO to Trust
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
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
