NIKHIL PRAHLADKA (Chartered Accountant) (53 Points)
28 March 2014Dear Friends,
One of our Employees is asking for a housing loan from the Company. The Company has sanctioned the loan but i wish to know what documents are required from the employee for any future reference and for the perquisites point of view. We would be charging him nominal interest and hence loan interest perquisites will get attracted.
Kindly let me know the documents required and also is there any limit for the loan amount.
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 28 March 2014
Hi Nikhil
Loan Limit: In my view there is no limit for loan amont.
Documentation wise: you need to take and prepare following:
1. Promisory note,
2. A agreement with respect to loan amont, interest , repayment term, duration of loan and other clause as per your term and conditions.
3. Keep Original documents of property with you.
This would be sufficient
NIKHIL PRAHLADKA
(Chartered Accountant)
(53 Points)
Replied 28 March 2014
Hii,
He is just searching for the property and will buy the same as and when appropriate is available.The Company has to relase the payment before the actual purchase happens. Any problem in that sense. We do not have any issue in giving loan without taking any security or property papers.
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 28 March 2014
first of all no problem is company don't want to keep to documents that was just for sake of security.
next is to claim the benefit of interest payment u/s 24 b it is advisable to take loan at the time of registry of property other wise no issue.
CAclubindia
