Loan from director
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 October 2010
Can a private ltd Co. accept loan in cash from its director?Also can the expenses of a company be paid by its director and be shown as unsecured loan from director in the books of the company?will Sec 269 of Income tAX Act apply?
26 October 2010
Yes a private company can accept loan from its directors. The same is exempt from the definition of deposit.
Regards
Regards
26 October 2010
Section 269SS of the Income tax Act,1961 squarely cover cash loan from Directors.
Guest
Guest
(Expert)
27 October 2010
Companies act, 1956
There is restriction in companies act,1956 for pvt ltd companies to accept loan from directors.
Income Tax Act,1961
Section 269SS: No person shall take or accept any Loan or Deposit from any person otherwise than by way of an Account Payee Cheque or an Account Payee Draft, if:
The amount of Loan or Deposit, or
If any Loan or Deposit was taken earlier and has remained unpaid (whether repayment has fallen due or not), then the amount of such Loan or Deposit together with interest, or
The aggregate amount of (1.) and (2.)
is Rs. 20,000/- or more.
Expenses of a company paid by its director, Treat as unsecured loan from director in the books of the company.
There is restriction in companies act,1956 for pvt ltd companies to accept loan from directors.
Income Tax Act,1961
Section 269SS: No person shall take or accept any Loan or Deposit from any person otherwise than by way of an Account Payee Cheque or an Account Payee Draft, if:
The amount of Loan or Deposit, or
If any Loan or Deposit was taken earlier and has remained unpaid (whether repayment has fallen due or not), then the amount of such Loan or Deposit together with interest, or
The aggregate amount of (1.) and (2.)
is Rs. 20,000/- or more.
Expenses of a company paid by its director, Treat as unsecured loan from director in the books of the company.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Tds on building rent monthly
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
Trending Online Classes
CAclubindia
