Hi!
What are the implications of lending money by an NBFC to it's MD?
3 Replies
RAMAKRISHNAN R
(INCOME TAX OFFICER)
(1736 Points)
Replied 15 December 2017
2(22)(e) will attract in the hands of MD
mohit pathak
(Learner)
(396 Points)
Replied 16 December 2017
Sir,
Thank you for the response.
But as per various Court decisions loan in the normal course of business will not attract section 2(22)(e).
It may be taxed as Parquisit in the hands of the director if Given at an interest rate lower than the market rate, generally 12%.
Is there any restriction under new companies act?
Divakar agarwal
(Student)
(247 Points)
Replied 17 December 2017
there is no any restriction under section 185 of companies act.
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