One pvt ltd company A wants to give repayable advance to another pvt ltd related company B and wants to charge FD rate of interest since A is closing its FD with bank to pay this advance. B will deduct TDS from the interest payment to A. Is there any prohibition under Income Tax law / Company law ?
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Interest paid to related party
Replies (1)
If it comes within the clutches of section 2(22)(e), then you have to sell out money for DDT , as section 115- O becomes operative.
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