babu (Senior accountant) (80 Points)
12 December 2009Hi all
We have taken cash loan from directors of private limited company some doubts in my self
how much amount will be receive in cash loan?
how to entry into books of accounts? and any other problem in income tax for shown in accounts cash loan or unsecured loan ? and another one is director residing in USA and amount sent it another director account and he pay for cash loan for monthly twice for the whole finalcial year
Please send ur valuable respose
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 12 December 2009
Section 269 SS of the Income Tax Act, a person cannot accept loan or depost exceeding Rs.20000 otherwise than by an account payee cheque or an account payee bank draft. However, it exempts certain types of payers mainly banks, FI's and Government, etc. So, in your case, the company cannot accept a loan in cash in excess of Rs. 20000 during a financial year.
CAclubindia
