yashsr (CA) (2285 Points)
29 March 2012If a long given/taken exceeds 20000, it has to be given/taken in a/c payee cheque or draft i.e. other than cash. But is this a daily limit or annual limit or a cumulative limit?
Furthermore, can a Pvt Ltd Company take loans from its directors without following this section or is it also applicable to them?
GOPAL AGGARWAL
(DOING NOTHING)
(1339 Points)
Replied 29 March 2012
IT IS IN TOTAL
MEANS TOTAL LOANS AT ANY TIME SHOULD NEVER EXCEEDS RS. 20,000/-
IF YOU WANT TO GET LOAN OF RS, 15000/- U CAN RAISE LOAN IN CASH BUT IS U FURTHER WANT TO RAISE LOAN FROM THE SAME PERSON BY RS, 10,000/- U CAN RAISE ONLY THROUGH CHARQUE AND NOT IN CASH AS THE LIMIT OF RS. 20,000/- WILL GET EXCEEDS
SAME IS ALSO APPLICABLE TO LOAN FROM DIRECTORS ALSO
yashsr
(CA)
(2285 Points)
Replied 29 March 2012
And if a Company has taken loans in cash from 3-4 people of Rs.15000 each, then that is not a problem, correct?
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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