Tax on loan write off

This query is : Resolved

Devendra Rawat (Querist)
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23 April 2014 If shareholder/Director of closely held company given loans to company and company continuously incurs losses, and on the other director has capital gain tax liability.. Is there any way to save the tax liability of director.. (for example if his loan to company is written off or like that).. Urgent Please

Rupesh Jain

Rupesh Jain (Expert)
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23 April 2014 not possible to set off the capital gain agst loan.

capital gain set off agst capital loss.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 April 2014 depends...any loan not in nature of working capital would not be entitled for any deduction. If the loan is given for working capital purposes, you will be able to claim deduction for write off only if it is accounted as a business activity/parked in income from other sources.

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