https://www.taxtmi.com/reply=120128 Whether a private company may extend an interest free loan to another private company with common directors raises statutory and tax compliance concerns; statutory exemptions for private to private transactions are narrow, and requirements for minimum interest on inter corporate advances and attendant tax scrutiny make interest free advances risky. Safer alternatives include equity infusion, share application money, or low interest intercompany deposits that better satisfy governance, disclosure, and tax considerations. en-us Tue, 10 Jun 2025 17:08:25 +0530 Wed, 18 Jun 2025 19:38:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/reply=120128 Whether a private company may extend an interest free loan to another private company with common directors raises statutory and tax compliance concerns; statutory exemptions for private to private transactions are narrow, and requirements for minimum interest on inter corporate advances and attendant tax scrutiny make interest free advances risky. Safer alternatives include equity infusion, share application money, or low interest intercompany deposits that better satisfy governance, disclosure, and tax considerations. Discussion-Forum Companies Law Tue, 10 Jun 2025 17:08:25 +0530 https://www.taxtmi.com/reply=120128