Loan for Business

[sourabh jain]

Can we Take a Loan in cash For Extension of Business , If Yes How Much Amount can we Taken , So that we Can Proof Our Part

Thanks and Regards

Sourabh Jain

[AA DESHMUKH]

Dear Friend

Please do not take any loan in cash unless there is husband - wife relationship. Discourage your client from taking such cash loans. In case of husband - wife even if it is allowed, i personally discourage all such transactions to my clients.

AI Summary

Cash loan restrictions: avoid cash loans for business; narrow husband-wife exception exists but is discouraged. Cash loans for business are discouraged due to documentary, compliance and tax-risk concerns; practitioners should avoid cash borrowings and prefer documented, traceable funding. A narrow husband-wife exception exists in practice, but even that is discouraged and documented financing is recommended to reduce tax scrutiny and evidentiary challenges.