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Company has taken cash loan from another company rs.5,00,000
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 ?
Replies (5)
Cannot take loan in cash over Rs. 20,000/-
Read full and give full reply
Not permissible u/s 269SS - cash loan/deposit above Rs. 20,000/-
The company shall be penalised equal to the loan amount u/s 271D.
You may ask the AO why is it not permissible.
It is auditor's responsibility to report in tax audit in annexure of loan and the company will be penalise....
Hi Eshwr,
According to section 269ss no person shall take loan more than 20k other than account payee check or or account payee bank draft.if taken then it will be penalised as per section 271d.
Why it is not allowed ? Logic behind would be because it may lead to money laundring
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