Dear Sir
in our case one proprietory firm to meet its financial problems accept loan from one of its employee (manager) by a/c payee cheque Rs.600000 and agrees to pay interest @ 10% is any legal problem in that
2 Replies
(Guest)
Since you are a proprietory concern you will the taxed as an individual.
If your turnover is exceeding 1 cr (If business) / 25L(profession), then you should deduct tax at source @ 10% when you pay interest to the employee( He should furnish PAN)
Also make sure that the repayments of the loan are by A/c payee cheques too.
Dhruvi N suthar
(Account Executive)
(303 Points)
Replied 21 December 2013
Agreed with Madhavi Pandit
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