Unsecured Loans in Proprietory Firm

This query is : Resolved 

03 May 2011 one proprietor is taking by cash as hand loan from others for interest 2% P.Month
will it possible to allow the transaction in aspect of I.Tax point of View. what is the Limits in this Regarding.

03 May 2011 loan can not be taken more than rs. 20000 in cash


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