Can interest payable on unsecured loan be converted into loan?
Any implications as per company law & income Tax?
Without mentioning further details ,that whether original loan was given to director or shareholder or granting loan is in OCB of company ,Restructuring in form of converting interest into original loan can be done ,for that you've to open Fund interst loan in books by corresponding Dr to debtor till the time interest is not recovered it will be liability in books ...loan to shareholders is a deemed dividend and to director is governed by 185 and further disclosure in Board report
Views expressed are personal view not an opinion ...
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