repayment of loans to director-loan swaping
This query is : Resolved
19 February 2009
A person is a director in twoPrivate limited companies say X & Y. The director has given loan to X company as per provisions of section 269ss.
Due to liquidity crunch the x company is not in position to repay the loan. repay.
Now the o/s loan of of directorin X company is proposed to be taken over by Y company.Since Y company has liquidity the same shall be repaid by y comapny through a/c payee cheque to director.
Will this type of transaction tantamounts to contravention provsion of section 269ss & 269T of income tax.if yes what are the penalty provisions. If this route is not permissible please suggest some alternative method.
Regards
Due to liquidity crunch the x company is not in position to repay the loan. repay.
Now the o/s loan of of directorin X company is proposed to be taken over by Y company.Since Y company has liquidity the same shall be repaid by y comapny through a/c payee cheque to director.
Will this type of transaction tantamounts to contravention provsion of section 269ss & 269T of income tax.if yes what are the penalty provisions. If this route is not permissible please suggest some alternative method.
Regards
19 February 2009
123
28 June 2023
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