Loan given to relative from business or from capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2011 A given a loan of Rs. 200000 to his son/daughter from business. what interest rate he has to charge on loan. can he give interest free to his son/daughter from business. is it complusory to charge interest on loan or not.

CS Bijoy

CS Bijoy (Expert)
Follow

03 November 2011 Please mention is this a Company and the position of the A Director or Proprietor.

In case of Individual he can give interest free loan.

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2011 yes this is individual

Upgrade to CAclubindia Pro. Subscribe Now!