Plz its very urgent
My query is related to sec. 269SS of Income Tax Act, 1961.
If unsecured loan taken is Rs.1,00,000/- and interest paid during the year is Rs.12,000/-
then closing balance will be Rs.1,12,000/-
Now my question is Which amount should be taken as "maximum amount outstanding at any time during the year as per sec 269SS?"
absolutely
rs.1,12,000/-
agree vth hitesh
Yes its very clear. Unpaid interest on loan will be added in outstanding principal amount and closing outstanding of loan will be Rs. 112000.
no doubt interest will be consdiered
Thanks to Hitesh & other people who have answered..
according to 269ss only 100000 should be taken as maximum balance because the interest of 12000 is not taken as bank or cash amount it is only entry has made for interest and in next year it is to be repaid only journal entry is done thats y 100000 is taken as max amt
ya maximum o/s balance is rs 1,12,000,, but the point is that u/s 269ss & 269t that amount of repaid/receive of loan can not exceed rs 20,000 in cash during the years otherwise 100% amount will be added in income( i.e cash payment > 20000) . and also squarred up amount of loan during the years
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