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Companies Act

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24 August 2010 Can a private company take loans in cash from outsiders and as well from directors.

24 August 2010 Pvt Company can take loan only from Directors, relatives & members including other Company.

Other than above it will be treated as Deposit from Public as per Section 58A

24 August 2010 And in any case cash loan taken above Rs. 20,000/- will be in violation of Section 269SS & 269T of the Income Tax act. So cannot be taken otherwise also.


24 August 2010 Great Help! Thanks for the reply!

25 August 2010 Agree with Jagruti...

A private co. is prohibited to accept deposit from public as per section 3(1)(iii). In case of Violation of this section private co. shall be treated as a public co. by the roc.

Regards



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