Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

directors loan

681 views 1 replies

babu

Senior accountant

80 Points Posted on 12 December 2009

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)

Amol Gopal Kabra (CA,CS,DISA)

Practicing CA

8639 Points Posted on 12 December 2009

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.