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Director's EMI Paid By a Company

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107 Points Joined April 2020

If a loan is taken by a director and EMI is paid by company, then how the EMI paid is treated in the books of a company,does it attract any tax?

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On 18 April 2020 at 15:41 Report
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CFO- at NHTF
58280 Points Joined August 2012
No.It will not attract any tax.

EMI paid on behalf of Director will be considered as loan to Director..
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On 18 April 2020 at 16:06
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"Do the Right Thing...!!!"
128147 Points Joined January 2015
Yes... I agreed to Mr Eswar..

Director's individual payments accountabile into director's loan account (as current account).

It's not taxable into company's books and also it's not a expenditure in company's books..
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On 18 April 2020 at 17:45
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710 Points Joined May 2017
Will it nit be considered as perquities and company will have to deduct TDs on it.

if it is loan, then also interest free loan and hence tax implications.

My views
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On 18 April 2020 at 18:17
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Student
23688 Points Joined November 2017
The Loan is taken from a Bank/Financial Institution by the Director in his name and the EMI is being paid by the Company right ?
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On 18 April 2020 at 19:17
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710 Points Joined May 2017
Just an addition to my earlier answer.

emi paid will be debited to directors remuneration or loan to director depending on the arrangement.

tax implications , I have replied earlier
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On 18 April 2020 at 19:21

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