Repayment of unsec. loan - cash

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2012 Dear Sir,
We are a Pvt. Ltd. Co. & having Op. Bal. unsecured loan. Can we repay these O/s loan in cash for ex. if O/s of A is Rs. 75k we can pay Rs. 15k in a day & in 5 days the A/c will be knock-off, similarly if B's O/s is Rs. 2 Lacs we can repay in cash the loan amt. in 12-13 days.
My Q. is can we do so as i mention above & it will not create any problem in Tax audit.
PLS EXPLAIN YOUR EXPERT OPENION IN TH MATTER
Thanks:
Rahul

Guest

Guest (Expert)

27 February 2012 This will purely depend on the skepticism of Auditor & the skill & knowledge of AO at time of assessment.