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Loan to director

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*****Accountant***** Never insult to a
1448 Points Posted on 04 May 2017

1) Can a Pvt. Ltd. Company give loan to Director?

2) Can a Pvt. Ltd. Company give loan to Partnership Firm?

Please explain easily...

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On 04 May 2017 at 18:21 Report
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12244 Points Posted on 04 May 2017
yes, but it will be taxed in the hands of director as deemed dividend
in the case of firm, once again none of the directors should be partner of the firm. if so then it will be taxed in the hands of the director as deemed dividend
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On 04 May 2017 at 19:32
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*****Accountant***** Never insult to a
1448 Points Posted on 05 May 2017

That means you want to say:-

1) If Pvt. Ltd. Company give loan to director then it will be treated as deemed dividend. In this case director will be liable to pay income tax on it?

2) If Pvt. Ltd. Company give loan to Partnership firm then it will be taxed in the hand of the Partner?

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On 05 May 2017 at 10:53
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12244 Points Posted on 05 May 2017
1. yes
2. yes but that partner or any of the other partners should have substantial interest in the company as a director
35 Reply
On 05 May 2017 at 11:50


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