Unsecured loan from parties

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amrish kumar rai (Querist)
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15 January 2015 Dear Sir,
We have a proprietor ship firm, My sales turn over 1.65 crore. We need unsecured loan so please advise me what the condition of unsecured loan and what maximum limit.

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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15 January 2015 Your turnover is above Rs.1 crore so your books of accounts are to be audited U/s44AB of IT act.Regarding taking of unsecured loans, there is NO maximum limit for taking.But certain matters you must follow.
1. Do not borrow in CASH. Take A/c payee DD/cheque/RTGS/NEFT.2.Same applies to repayment also.3.The lender must be identifiable and be able to confirm the sais loan, its sources etc.4.Any interest in such account also to be repaid through banking channels.5.TDS attracts if the payment of interest exceeds Rs.10,000/-.( When the borrowing from any person exceeds Rs.19,999/- at any point of time in a year, there should NOT be any cash transactions in such account)

Rupesh Jain

Rupesh Jain (Expert)
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17 January 2015 your book of account are liable to audit u.s 44AB of income tax, for tha loan agreement to be prepare and repayment condition also to be fixed and intt rate if any.
and repayment and accept the loan via banking channel don take and give amount in cash.

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