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Director's EMI Paid By a Company

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107 Points Posted on 18 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 Posted on 18 April 2020
No.It will not attract any tax.

EMI paid on behalf of Director will be considered as loan to Director..
59 Reply
On 18 April 2020 at 16:06
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"Do the Right Thing...!!!"
128147 Points Posted on 18 April 2020
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..
463 Reply
On 18 April 2020 at 17:45
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721 Points Posted on 18 April 2020
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 Posted on 18 April 2020
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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721 Points Posted on 18 April 2020
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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