16 September 2012
Dear Sir, One of the assessee has set up his business in fy 2011-12 and he was invested around 6 lacs in the starting. As Sec. 269 restricts cash loan more than 20000/- and for being on safe side, can he show Rs. 6 lacs arangement as a cash gift received from his father-in-law (who is a farmar) in last 2 to 3 previous years and which is later on invested by him in his business.
17 September 2012
If u received gift from your father then it will be treated like your own contribution in the business and you r not able to paid interest on that gift.
as far as question of cash then gift in cash is also acceptable.
CAclubindia
