directors loan

Hi all

 

We have taken cash loan from  directors of   private limited company  some doubts in my self 

how much amount will be receive in cash loan?

how to entry into books of accounts? and any other problem in income tax for shown in accounts cash loan or unsecured loan ? and another one  is director residing in USA and amount sent it  another director account and he pay for cash loan  for monthly twice for the whole finalcial year

Please send ur valuable respose

Replies (1)

Section 269 SS of the Income Tax Act, a person cannot accept loan or depost exceeding Rs.20000 otherwise than by an account payee cheque or an account payee bank draft. However, it exempts certain types of payers mainly banks, FI's and Government, etc. So, in your case, the company cannot accept a loan in cash in excess of Rs. 20000 during a financial year.

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