Loan from Director / Director's relative


Hi… We are a startup company with a paid up capital of Rs. 100000/- We are planning to inject some money into the company as a term loan bearing interest from Director’s relative for working capital. Is there any Tax obligation for the company / Directors for the said amount?



You can add funds to company from blood relatives and director and you can show it as unsecured loan. In future you can repay it with or without interest. There is no tax obligation to company.

Yogesh - Startup Expert.