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Deposit of 500/1000

Ramakrishnaraju (supervisor) (211 Points)

19 November 2016

I have taken a loan from LIC Housing for Rs.10,00,000/-(Under Special chennai fo\lood -2015) and out of which Rs.7,00,000/- was given to my father's friend. Now, he wants to return it immediately with 500/1000 notes. Can i take and deposit, will it be taken as hoarding of black money. I can prove my source of income and the loans. What will happen if the IT is taking this as separately post demoneitsation. My taxable income is 10,05,000/-. Kindly advise me whether to take that and deposit(If i don't take from him, he will not return the money).

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4 Replies

Shivangi Garg (Practicing Chartered Accountant) (110 Points)
Replied 19 November 2016

Sir,

Its your money and from a valid source.

There is no point of rejecting it reciept.

Accept it, deposit in your account and if and when asked for its source, explain and justify your claim.

Thanks

CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 19 November 2016

Originally posted by : Shivangi Garg
	Sir, Its your money and from a valid source. There is no point of rejecting it reciept. Accept it, deposit in your account and if and when asked for its source, explain and justify your claim. Thanks

From 8th November cuurency has no legality therefore It should not be accepted.

Further your uncle should deposit in their bank account and if any inquiry approach by Revenue dept. ,then he can give your name that as unsecured loan...

Shivangi Garg (Practicing Chartered Accountant) (110 Points)
Replied 19 November 2016

Bharghav Sir,

I agree with your reply.

but the borrower is denying repayment (either he'll pay in old currency or won't pay) in such case the lender does not have any other option. he can't let go his money.

plz suggest..

Ramakrishnaraju (supervisor) (211 Points)
Replied 20 November 2016

I am seeing daily some new new news is coming up. I am worried since i am in the 30% slab and if they treated this as hoarding, i have to pay 2,10,000/- as IT + 4,20,000/- as Penalty and another Rs.18600/- as surcharge for the whole amount, leaving around 50,000/- . Under this circumstances, your valued suggestions are solicited.