Loan to employees
This query is : Resolved
15 May 2014
My co. is a listed co.One of the employees of peon level wants an advance of Rs 50,000 from the co.
Whether as per The Companies Act,2013 Board approval is required for granting the advance to employees and what are the new req. in this regard?
Whether as per The Companies Act,2013 Board approval is required for granting the advance to employees and what are the new req. in this regard?
Sandeep Dharar
(Expert)
15 May 2014
No rule is there for advance to employees. The company can approve the loan.
Sandeep Dharar
(Expert)
15 May 2014
It depends on the Company to charge Interest or not. The Company can also provide interest free loan. But it is better to charge interest. Coz it will result in income of the Company & will also attract TDS so the transaction become secure & the company helps the government by paying taxes.
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