partnership firm
This query is : Resolved
nidhi marothia
(Querist)
01 October 2009
Can a firm give loan to partner or his relatives ?
Manish Soni
(Expert)
01 October 2009
yes a firm can give loan to its partners or relatives of any partners.
chetan soni
(Expert)
01 October 2009
yes, firm can give the loan to partner or his relative. But if the partnership firm is providing interest on capital accounts of the partners then you need to collect the interest on such loan also @ 12%.
Otherwise interest dr. to profit & loss account to the extent interest on loans given will be not be allowed.
Otherwise interest dr. to profit & loss account to the extent interest on loans given will be not be allowed.
CA Suresh Choudhary
(Expert)
01 October 2009
agree with chetan
Aditya Maheshwari
(Expert)
01 October 2009
Yes but it should not be interest free loan
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