Loan to Directors by Private Companies : Hurdles from Companies Act & Income Tax Act

0
1640
Print Friendly, PDF & Email

For long the private companies have been favoured with many relief under Companies Act 1956 , but the new Companies Act 2013 has brought in the private companies at par with public companies as far as loans to directors are concerned. In one way , now the situation for private companies are worse than listed companies who are at left out of the clutch of certain prohibitory laws under Income Tax Act like section 2(22)(e). So , in this post , firs the provisions which prohibit loans to director by companies are discussed and then the provision under Income Tax Act on such loans.

This content is for annual and Semi Annual members only.
Log In Register