Loan given in cash

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 Helloo..

If loan is given to employees in cash and it exceeds rs.20000/- per employee, will it be disallowed as the payment exceeds rs. 20000/- and if it is allowed it will be allowed under which section?

Plz rply ASAP.
Thanks & Regards.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 June 2013 If it is given against any official expenses , then it will be disallowed u/s.40A(3) subject to rule 6DD

Guest

Guest (Expert)

19 June 2013 I think employee also can not take the loan in excess of Rs 20000 other than by account payee cheque or account payee demand draft.

As per the provisions of section 269 SS

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