Unsecured loans in case of proprietary firm

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2014 dear expert,
what are the provisions (regarding payment, interest etc) which are to be followed by proprietary firm if it takes unsecured loans & from whom it can take such loans?

thanks a lot !

Rupesh Jain

Rupesh Jain (Expert)
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26 June 2014 if prop firm books are liable to take audit u./s 44AB then you have to deduct the TDS on intt u/s 194A if you pay intt. in year exceed Rs. 5000/- per person. if PAN available if PAN not available then TDS @ 20% will be deducted.

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2014 can it take unsecured loan from any person & whether payment of interest is compulsory?

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