Private Limited Company Loan

- Is there any issue if the loan from previous shareholder continues on the books ? Is this with-in MCA guidelines? = There should not be any issue as far as I know. - This person due to legal issue with government is unable to operate a bank account - is it fine if we return this slowly as cash to them and what documentation do we need to put together if we do that. Thank you for your guidance. Sameer = You can not replay loan in cash if the amount of loan if more than Rs. 20,000/- Sections 269SS & 269T of Income Tax - Repayment of Loan: The aggregate amount of loans or deposits, including the interest amount, held by such person in his own name, or jointly with any person, is Rs. 20,000 or more. In nutshell, a person cannot repay the loan or deposit in cash, if the amount is Rs. 20,000 or more.

Thank you Asha ji. Can we write off this loan ? If we do that what will be the tax implications.

Another question - can we declare this loan amount as company income and pay taxes to close it?

 

Regards

Sameer