About cash deposit and interest free loan
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 July 2012
Dear Experts,
There is a cash-in-hand balance of Rs.1,60,000 in my balance sheet, Rs.50,000 in my brothers balance sheet and Rs.40,000 in my mothers balance-sheet. Now we would like to give interest free loan to our brother-in-law.
So can we deposit the cash in our respective accounts and then give interest free loan to our brother-in-law. The total loan we will be giving is rs.4 lakhs. Is there any clauses in income tax that I need to follow to give interest free loan?
Also if we deposit Rs.1,50,000 in our bank account in a single transaction, does bank charges any transaction tax?
There is a cash-in-hand balance of Rs.1,60,000 in my balance sheet, Rs.50,000 in my brothers balance sheet and Rs.40,000 in my mothers balance-sheet. Now we would like to give interest free loan to our brother-in-law.
So can we deposit the cash in our respective accounts and then give interest free loan to our brother-in-law. The total loan we will be giving is rs.4 lakhs. Is there any clauses in income tax that I need to follow to give interest free loan?
Also if we deposit Rs.1,50,000 in our bank account in a single transaction, does bank charges any transaction tax?
CA PARAS BAFNA
(Expert)
18 July 2012
Deposit cash in small amounts to avoid any
inquiry.
.
Transaction Tax in the thing of past. It is no more applicable.
.
You can even gift the amount to a relative.
.
inquiry.
.
Transaction Tax in the thing of past. It is no more applicable.
.
You can even gift the amount to a relative.
.
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