Question ID :
38024
Unregulated deposit ordinance 2019
Whether Unregulated deposit Ordinance will have any effect on small businesses taking deposits/loans from Relatives/nonrelatives in their books of accounts. I feel this ordinance has been brought only to prohibit deposit from Public by only those entities whose primary business is accepting deposits from people on the pretext of returning with heavy interest etc. Please clarify
Posted by
Mahesh Kumar
on
Mar 08, 2019
Filed Under
DIRECT TAXES
There is no ban on any amount received in the course of, or for the purpose of Business as per section 2(4)(I), the same is also clarified by the Finance Ministry.
Posted by
Ashish Kumar Goyal on
Mar 08, 2019
Answer ID :
76364
The meaning of deposit as defined in BUDS Ordinance EXCLUDES loan taken by individuals from his relatives Sec 2 (4)(f). In case of Partnership firms, loan from relatives of any partners also exempted. However, if it is a company, then only transactions with public sector undertaking are exempted. The list of RDS is also detailed out. Those deposits which are not RDS are UDS.
Posted by
Dhanesh Mehta on
Mar 09, 2019