Please confirm regarding Interest free loan given by director to private limited company..
Please confirm the same as soon as possible
RAJA P M
("Do the Right Thing...!!!")
Replied 03 February 2020
There seems no such provision which restricts a Director to give interest free loan to the Company so yes Directors can give interest free loan to the Company.
Thanks for the reply... We just have to get a declaration from director that he is giving loan to company out of his funds and then we have to report it in directors report and in notes to accounts as well we have to show it as unsecured loans?
It will be unsecured loans
and reporting in Form DPT-3 will also required to be done for any single borrowing of the Company on or before 30th June of each year.
Okay it means if director gives loan to company then company have to file this form
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