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Need to know the tax applicable on company loan

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10 April 2012 Hi I need to know the tax applicable(by Income tax dept) if one company loans to another company in India.

10 April 2012 If you have landed the money at any fixed rate of interest then interest earned is to be taxed in the hands of the lander. The payer of interest shall deduct TDS on interest but the gross interest earned shall be taxable in the lands of the company which is receiving the interest. As per companies act the loan from company to company is also not attracted by the provisions of section 58A

10 April 2012 Agree with expert. but please see the applicability of Sec 372A of the Companies Act, 1956.


10 April 2012 Agree with Experts



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