Loan by Company to LLP

85 views 2 replies

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? 

Replies (2)

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)


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register