Easy Office
LCI Learning

loan given to director

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
31 January 2011 Is there any restriction on a director of a pvt ltd co to receive any loan from the company in cash or kind.
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
31 January 2011 Section 295 of the Companies Act,1956 says about loan to directors. But this section is not applicable to Private Limited companies.
If the company have accumulated profits, the said loan will be treated as deemed dividend under section 2 (22)(e) of the IT Act,1961 and will be assessed in the hands of the said director.
Profile Image

Jayashree S Iyer

Profile Image

Jayashree S Iyer (Expert)
31 January 2011 Agree with Warrierji.
Upgrade to CAclubindia Pro. Subscribe Now!

Profile Image

Sunil Kr. Sanganeria

Profile Image

Sunil Kr. Sanganeria (Expert)
31 January 2011 In my opinion, if that director does not hold 10% shares of that Company, Section 2(22)(e) of the It Act will not get attract
Profile Image

udit sharma

Profile Image

udit sharma (Expert)
01 February 2011 Agreed with Sunil Sir!

God Bless

CS Udit Sharma

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries



Live Budget News and Updates

Trending Online Classes

view all classess
Let's Talk Money: You've Worked Hard for It, Now Make It Work for You
Click here for more bestsellers


Answer Query



Quick Links