Residential property purchased by Company

A company can indeed purchase residential property and provide it to its Managing Director (MD) for residency, either rent-free or by charging rent. However, this arrangement has tax implications. The MD will likely need to pay income tax on the benefit of residing in the property without paying rent. This is generally considered a Related Party Transaction (RPT) unless it's part of a broader scheme for senior management or whole-time directors. The company may also need to consider tax expenses related to this provision.