Directors personal Expenses paid bi co.

This query is : Resolved

Vimal Raj (Querist)
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09 October 2009 How to treat directors personnal expenses paid by co. like cerdit card payments, residence electricity payments etc.

srinivas

srinivas (Expert)
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09 October 2009 the said personal expenses are disallowed in the hands of the company while calculating the incometax

Ankur Garg

Ankur Garg (Expert)
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09 October 2009 Hi,

Kindly appreciate payment of director's personal expenses by the company is a very serious issue from the company law point of view.

It may be treated as loan to director under section 295 or may be treated as remuneration to director.

Please take care.

Regards

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