Funding of esop trust???/

Yes, direct funding can be done. Refer section 77 for the same. No procedures involved except Board meeting and documentation like MOU...

Regards

Jaideep Pandya

yes funding can be done by the company to the Trust. it will be shown as Loan to the trust in the books of the company. it should be authorised by the board by way of board resolution.

Thank you Mr. Jaideep & Mr. Ravindranath

Dear JaiDeep,

How the taxation of interest paid by the trust to compnay will be done. Trust will deduct TDS on amount of interest paid. And How the trust will claim the interest as expene in its books as it does not haeany other income.