ddpaw (student) (68 Points)
04 December 2012A pvt company purchased a house property. This property is used by director for residential purpose.
What will be tax treatment in case of company & director.
can interest on loan taken by company for such house property allowed as business expenses?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 05 December 2012
it will be considered as an business expense. the flat is given by the company for the residence of the director. The director is working for the company & is rendering services to the company whihc is generating revenue to the company. So teh expense on account of rent incurred by the company on behalf of the director will be considered as an business expense.
The rent will treated as an taxable perquisite in the hands of the director by way of rent free accomodation. refer rule 3 for more details
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