simply,
AS per the provisions of sec 269ss. co shall not take or accept loan and deposits 20000 or more in cash.
my query is that
can a company give loan more than 20000 in cash. (it is not a revenue expenditures so is not attracted by sec 40A(3).
please expalin me the meaning of TAKE OR ACCEPT DEPOSITE. Does accept of deposits covers receipt of cash more than 20000 like trading receipts.
Taking of loan means procuring a loan from someone & accepting of loan means you have accepted to give a loan to someone. In the first case the loan wud be a liability & in second case it would be an asset.
Hence the co cannot give loan to anyone exceeding 20k otherwise than by an A/C Payee Cheque/draft. Otherwise there wud be penalty u/s 271D to the tune of whole of the loan/deposit taken/accepted.
CAclubindia
