01 November 2010
My co has granted 2 employee loan amounting 4.5 lakh each at nil rate of intt. repayable in 5 yrs . now i want to know that whether co can claim notional loss of intt.as expenditure on such loan. or to treat the notional intt on loan as part of salary given to those employee. pls reply soon that whether such notional loss of intt is an expenditure or not?
01 November 2010
hi i am agree with ca navin jain and i say that we can not claim notionalloss nor we can make salary of employee who give intt. free loan thanking you
01 November 2010
thanks for replying . but one moot question remained in my mind company has given loan to employee naturally for making them loyal to co can we claim the same u/s 37(1) of the income tax act
CAclubindia
