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?
5 Replies
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 18 April 2020
No.It will not attract any tax.
EMI paid on behalf of Director will be considered as loan to Director..
EMI paid on behalf of Director will be considered as loan to Director..
RAJA P M
("Do the Right Thing...!!!")
(128106 Points)
Replied 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..
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..
SUSHANT BIDAYE
(667 Points)
Replied 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
if it is loan, then also interest free loan and hence tax implications.
My views
Shivam RC
(Student)
(23683 Points)
Replied 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 ?
SUSHANT BIDAYE
(667 Points)
Replied 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
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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