Can Pvt Ltd. co give intrest free loan to its director.
1 Replies
Gautami D
(Assistant Company Secretary)
(32 Points)
Replied 12 August 2015
Section 185 i.e. Loan to directors - is not applicable to a private company -
a. In whose share capital not other body coprorate has invested any money;
b. If the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up sharecapital or fifty crore rupees, whichever is lower; and
c. Such a company has no default in repayment of such borrowings subsisting at the time of making transactions under Section 185.
This exemption has been provided as per the notification dated 5 june 2015. If the above conditions are fulfilled then the private company can give interest free loan to director.
Recent Topics
- Clarity regarding Sec 16(4)
- GST ON HOTEL ROOMS details
- Relief for Delayed Filing of Tax Forms
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
Related Threads
CAclubindia
