04 June 2010
My client having a pvt ltd co. They have accepted deposits from shareholders and from directors.As per section 58A, directors deposits is not considered as deposits.My querry is on directors deposit can we pay more interest then stipulated in rule. Further what is the maximum interet company pay to its depositors?
04 June 2010
There is no restriction on the rate of interest for deposits which fall within the category of exempt deposits. If the above mentioned deposits are exempt deposits, then there is no restriction on the interest rate.
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