Outstanding interest u/s 269ss/t

Deep Chauhan (Article) (42 Points)

19 September 2014  

Should the jounal entry for outstanding interest on unsecured loans at the end of the year considered as loan or deposit accepted u/s 269SS. And if yes should it be classified under category of loan accepted otherwise than by account payee cheque/bank draft?

I would like to clarify that sometimes these loans are not repaid for years and the balance keeps increasing for many years due to interest.

Thank You in advance.