Loan by shareholder
This query is : Resolved
23 October 2012
Dear Experts
a shareholder of pvt co borrow unsecured loan from his friend @ 6% pa(less than FM ROI) and lend the same amount to his company in which he is shareholder at 6% pa
what are the tax and tds implication.
Can AO enhance shareholders income with same as market rate of interest.
and what will be provision if such share holder is director of company.
Thanks in advance
Ritesh khurana
a shareholder of pvt co borrow unsecured loan from his friend @ 6% pa(less than FM ROI) and lend the same amount to his company in which he is shareholder at 6% pa
what are the tax and tds implication.
Can AO enhance shareholders income with same as market rate of interest.
and what will be provision if such share holder is director of company.
Thanks in advance
Ritesh khurana
24 October 2012
It makes no difference as either shareholder or Director advances amount as loan to a Company.
Company while paying interest will deduct TDS (if interest 5000 or more during the year) @ 10%.
Though A.O.can enhance the rate of interest but will never be done so. If it is done then Profits of Company will come down and Govt will loose I Tax by 30.9%.
contact@vkbajaj.co.in
Company while paying interest will deduct TDS (if interest 5000 or more during the year) @ 10%.
Though A.O.can enhance the rate of interest but will never be done so. If it is done then Profits of Company will come down and Govt will loose I Tax by 30.9%.
contact@vkbajaj.co.in
24 October 2012
THE ASSESSING OFFICER HAS NO RIGHT TO SIT ON THE CHAIR OF A BUSINESS MAN AND DEICDE HOW HE SHOULD EARN. HE HAS TO COMPUTE THE TAX ON THAT TOTAL INCOME ON WHAT THE ASSESSEE ACTUALLY EARNED OR DEEMED TO BE EARNED.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST Regis.
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
