Benefits to specifies person

DHANYA.G (Practicing Chartered Accountant)   (43 Points)

27 June 2024  

The Directors of a company has formed a Charitable Organization and the trust is now a public charitable Trust registered U/s 12 AB. 

For a capital asset addition, the Company has granted loan to the trust and the trust is paying interest to the trust below the normal bank rates. 

Whether payment of interest which is under arm's length will be treated as a benefit to specified person as per section 13(1) (c)?