Loan to relatives of director of pvt ltd,whether permissible
This query is : Resolved
28 December 2012
I want to know Whether a private compnay can give loans to directors , relatives , partnership were directors are partners .
1)The company is not a lending company .
2)Which provision need to be followed ?
3)Thanks in Advance ...
1)The company is not a lending company .
2)Which provision need to be followed ?
3)Thanks in Advance ...
28 December 2012
As far as companies act is concerned there is no problem, but if the directors are also shareholder of the co and holding more than 10% of shares then the loan will be ragrded as deemed dividend u/s 2 (22)(e) of the income tax act.
Message likes :
1 times
28 December 2012
1)Any board resolution required for approval of loan to directors ,relatives ,companies , partnership were directors /their relatives are interested ?
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Tax on Deemed Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Banking Related Issue
- 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
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
