Company has taken cash loan from another company rs.5,00,000/-
This query is : Resolved
Eswar Reddy S
(Querist)
27 December 2013
Hi all,
One company has taken cash loan from another company Rs.5,00,00.
Is it permissible under section 269S?
If not permissible what is the accounting or incometax effect on the same ?
Why it is not permissible ?
CA VISHNU GAVKARE
(Expert)
28 December 2013
No. it is not. it must be taken by cheque
Nischit Sanghavi
(Expert)
28 December 2013
No person shall take or accept any loan u/s 269SS from any other person any loan or deposit otherwise than by account payee cheque or Draft more than Rs.20000/-.
Penalty imposable is sum equal to the amount of loan taken or accept.
Penalty imposable is sum equal to the amount of loan taken or accept.
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