24 December 2013
Dear Sir Plz guide me of what is benificial of taking loan of Rs. 70 Lakh whether in the name of Company or individual's director. This loan amt. will attract almost Rs. 7 lakh interest. Loan is of Housing loan. if taken in the name of company what would be benificial showing it as guest House of company or showing as quarter of employee. Becouse showing quarter of employee will trouble employee as perquisite taxability on the hand of employee. Plz Suggest
02 January 2014
If the loan is to be utilised for construction/acquiring a house for the director, then it is better that the loan is taken in the name of the director himself.
The director will be get deduction u/s 24 for interest on loan and deduction u/s 80C for repayment of principal amount.
CAclubindia
