Loan to a private limited from a huf

A K Jain (Businessman ) (23 Points)

27 March 2016  

Hi.

Can a HUF can be made a shareholder in a Pvt Ltd company and then give a loan to the said Pvt Ltd Company.

Also, in this specific case, the Karta of the HUF is also the Managing Director of the said Pvt Ltd Company.

It would be great if some one could give a detailed explanation rather than a Yes or No answer.

Thanks.