19 September 2016
We are private limited company & company has accepted cash loan of rs 25,00,000/- from Director of private limited company, it's acceptable to private limited company!!!. because our Tax Auditor said it's against company law. Please give us clarification or notification for cash loan acceptance from director.
19 September 2016
In Companies Act, 2013, there is no restriction on taking loan in cash by Company from Director (however, such loan should be given by director out of its owned fund). Section 269SS of Income Tax Act does not allow any person to give loan or deposit in cash to another person if such loan or deposit is Rs 20,000 or more. Kindly refer this section. Your transaction is against Income Tax Act. It's clear violation.
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