13 July 2010
AGREE WITH EXPERTS. WOULD LIKE TO ADD THAT IF THE PVT LTD COMPANY IS A NBFC WHOSE MAIN BUSINESS IS GIVING LOAN FOR INTEREST, LOAN CAN BE GIVEN TO DIRECTORS WITHOUT ATTRACTING SEC 2(22)(e).
13 July 2010
Further in addition to the above there must be reserves in the company for attracting provisions of Section 2(22)(e) also. If no balance in reserves like P & L A/c and general reserve then also provisions not applicable.
13 July 2010
Mohinder Ji how can you say reply of Ankur Ji is not correct? He correctly pointed out that "Loan to director is governed by section 295 which is not applicable to a private company." and "a private company can give loan to its director and can take loan from its director (if it is not subsidiary of a public limited company)." His view were from point Companies Act point of view. And our reply threw light on Income Tax perspective. So i think his reply is correct. Can you throw some light on in support of your views?
14 July 2010
My dear, no need to be so aggressive pl. this query is being raised by Mr. Singhvi for income tax purpose only and reply is only straight and simple.I refrred all three replies, if these combined conditions are there, loan given to directors may be added to their respective income, that's it
14 July 2010
I do agree that Singhvi question was for IT purpose but the same needs to replied looking towards all the relevant provisions of companies as well as Income Tax Act as the query mentioned was to give and take loan and a further clarification is always better. And also as u say half knowledge is dangerous, it could turn out that the person might not refer companies act for that matter. So nothing wrong in the reply.
14 July 2010
Mohinder Ji i was not aggressive in my comment.....I just said you could have avoided saying "reply of Ankur garg is not correct". We all are professionals and should respect our fellow professionals. Hope you will understand.
15 July 2010
you are aggressive in your behaviour, it is again clear from your above post. as far as respect to professional is concerned, i always respected my co-professional since last 30 years of my professional carrier which will continue till last. anyway i am very thankful for reminding me of my duties by your kind advice. thanks again.
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