Doubt regarding loan from a director
This query is : Resolved
05 March 2012
Hi,
Can someone advise if it is ok for a Pvt.Ltd.Company to accept a loan(account payee cheque only) from one of its directors ?
Kindly advise ?
Thank you.
Gireesh
Can someone advise if it is ok for a Pvt.Ltd.Company to accept a loan(account payee cheque only) from one of its directors ?
Kindly advise ?
Thank you.
Gireesh
05 March 2012
There is no prohibition on accepting loan from a director. the only thing that the company should keep in mind is that is does not violate the provisions of Section 269SS and Section 269T, i.e., it does not accept or repay the loan amount in cash if the amount exceeds Rs. 20,000/-
Since you have mentioned that the loan shall be availed through an account payee cheque, the provisions of Section 269SS are not violated.
Accordingly, the company can accept loan from the director.
Since you have mentioned that the loan shall be availed through an account payee cheque, the provisions of Section 269SS are not violated.
Accordingly, the company can accept loan from the director.
Message likes :
1 times
05 March 2012
However, as per Companies (Acceptance of Deposits) Rules, the company should obtain a confirmatory letter from the director stating that the money lent is his /her own money and not borrowed money.
Charu Srivastava
(Expert)
06 March 2012
A Private Company can accept deposit from the directors, shareholders and relatives.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Advances to related party
- Intimation under section 245
- Royalty payments to the Mining Department for procurement of murum - GST input
- Capital Gains Tax on Inherited Mutual Fund
- IMS (import of goods) ITC related
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
