Hitesh (finance) (37 Points)
06 September 2010We are taking loan from Personal Account of owner of a Proprietorship concern, can we repay the same in the account of Proprietorship concern instead of Personal Account of Owner
and can we take the loan from Account of Proprietorship Concern and show it as the loan taken from Personal Account of Owner of Proprietorship Concern
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 06 September 2010
HI DEAR,
SECTION 269SS AND SECTION 269T IS APPLICABLE ONLY WHEN THE LOAN IS TAKEN FOR BUSINESS PURPOSE OR SHOWING IN THE BALANCE SHEET.
FURTHER, IF THE LOAN IS TAKEN FOR BUSINESS PURPOSE, U CAN MAKE REPAYMENT TO OWNER IN HIS PERSONAL A/C OR IN HIS PROPRIETORY CONCERN A/C . COZ IN CASE OF PROPRIETORY CONCERN, THERE IS NO DISTINCTION BETWEEN PROPRIETORY CONCERN AND PROPRITOR HIMSELF. BUT WHENEVER U MAKE THE REPAYMENT OF LOAN TAKEN FROM PROPRIETORSHIP A/C AND MAKES PAYMENT BACK TO PROPRIETOR CONCERNED, ENSURE TO TAKE A CERTIFICATE FRM THE PROPRITOR CONCERNED THAT THE RECEIPT IS TOWARDS THE REPAYMENT OF LOAN GIVEN.
INCOME TAX DEPARTMENT DOESN'T MAKE ANY ISSUE WITH REGARD TO THAT. BUT PLEASE ENSURE TO GET CERTIFICATE FRM PROPRIETOR CONCERNED.
REGARDS,
MANOJ
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