Regarding acceptance of loan

This query is : Resolved

amit periwal (Querist)
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04 August 2015 sir,
i want to know if, HUF is a proprietor of a proprietorship firm and their karta is a director in a pvt. ltd. company. in this case company can accept loan from that proprietorship Firm.

CS Divesh Goyal

CS Divesh Goyal (Expert)
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07 August 2015 Mr. Amit,

In case of Private Company. Comapny can take loan only from the following:

Directors (its owned fund)
Members upto 100% of paid up share capital and free reserve
inter corporate loan.

Loan from the HUF or Proprietor Firm will consider as deposit. Which private Company can't accept.