Loan by Company to LLP

The Company has advanced loan to a LLP wherein the relative of its director is a Partner. Is this allowed under Companies Act? Further, is it taxable under any provision of Income Tax? 

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Quick Summary
This discussion clarifies whether a company can provide a loan to an LLP where a director's relative is a partner. It confirms this is generally not permitted under the Companies Act. However, if the loan is genuine, there should be no tax liability under the Income Tax Act, specifically referencing Section 2(22)(e).

No not allowed under the companies Act

If the Loan is Genuine in Nature then there is not tax liability in Income tax.

Reference section 2(22)(e)

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