Hello Experts,
Please suggest the TAX Treatment In case Given Below.
I am Working with a Private company which is currently in loss.
Directors of the Comapny and HUF of directore have received the Dividend of Rs. 2 crores from other Companies.
Directore and Huf of Directors want to invest the proceeds of the dividend in one year FD in their personal account.
As the directores and HUF have many other incomes so they are in the 30% tax Bracket.
So I have suggested to the directors to Give Interest free loan to Company and invest the same proceeds in FD's on account of company.
As the company already is in loss so the interest on account of FD will be set off from the Loss from PGBP. so that how you will be able to save your tax.
Please advise and suggest me Wheather decision taken by me is correct.
Wheather HUF can give interest free loan to Comapny.
Wheather money taken on interest free loan can be invested in FDs.
Regards,
CA Yogesh
9999-505-504
You can also leave the reply at caygarg @ gmail.com
CAclubindia
