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Loan to shareholders | Income Tax Act | Companies Act | Deemed Dividend

Hi Readers,

Shareholders are the owners of the company, they have the ultimate control over the affairs of the company which is generally exercised by the directors appointed by them. 

Especially in closely held companies, shareholders reach out to the company with a request for a loan to meet their personal necessities. In such cases, the first question that comes to our mind is whether the company can grant a loan to the shareholders and what will be the tax implication of such transaction.

In this blog, we have made an endeavor to enlighten you with the relevant provisions relating to granting of loan to the shareholders of the company.



Kind Attention: The information provided herein is for educational purposes only and the author assumes no responsibility or liability for any errors or omissions in the content. 








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