H Pvt. Ltd is the Holding of S Ltd, can S ltd convert the loan from H Pvt. Ltd into equity.
In other words can the repayment of loan be made by way of issuing equity shares??
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Conversion of Loan into Equity
Replies (4)
not permissible u/s 269T of the income tax act
But Sir, section 269T is related to the repayment of Deposit only.
| Originally posted by :Ankur Srivastava | ||
| " | H Pvt. Ltd is the Holding of S Ltd, can S ltd convert the loan from H Pvt. Ltd into equity. In other words can the repayment of loan be made by way of issuing equity shares?? |
" |
yes u can.
further shares can be offered to any persons in any manner whatsoever if a special resolution is passedto that effect is passed by the company in GM(refer to Sec. 81(1A) of Companies Act). if the loan carries an option to be converted into the equity sahres then Sec. 81 shall not apply.
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