Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Limit of unsecured loan in proprietorship firm

Ramesh Sharma (Senior Accountant) (42 Points)

15 March 2015

I m a proprietor of a firm. I have take unsecured loan from relative & friends.Can you suggest me limit of loan recieved in a year & if i paid interest is applicable for tds or not.

Reply
Follow
Share

3 Replies

CA Raj Doshi (Practising CA) (8903 Points)
Replied 16 March 2015

If you were under tax audit in the last year , then tds to be deducted in current year. Take loan as per requirement. No limits as such. Loan to be taken and paid only through cheques.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Ramesh Sharma (Senior Accountant) (42 Points)
Replied 16 March 2015

THANKS FOR SEGGESTION, RCD.

Shaghaf Alam (2 Points)
Replied 31 January 2018

How much unsecured loan can be taking from relatives and friends in case of a new proprietorship firm will be starting business with a capital of Rs. 5 LAKH. Also let us know can that loan be interest free?