03 April 2015
Dear Sir/Madam,
In I.T Act there is an rule that we can give/take loan in cash of only Rs:19,999/- p.a. per person.
If i have a
Cash Withdrawal of Rs:1,50,00/- & Cash Deposit of Rs:3,00,000.
Can i show my Cash Withdrawal of Rs:1,50,000/- as given loan to 10 different person(i.e. Rs:15,000/- each). And
my Cash Deposit of Rs:3,00,000/- as taken loan from 20 different person(i.e. Rs:15,000/- each).
A written document of loan given/taken is made just for an evidence.
Is my cash explanation is acceptable as per the law?
Thank You.
04 April 2015
Very first i have to request to correct your question that from where u r withdraw such amount if such amount withdraw from bank and deposited in bank than no problem at all.
04 April 2015
Very first i have to request to correct your question that from where u r withdraw such amount if such amount withdraw from bank and deposited in bank than no problem at all.
04 April 2015
I think it is bank that he is talking about. Although the question is not clear why exactly he wants to complicate so much showing plenty of cash loans. Have u received any scrutiny order ?
05 April 2015
Your planning is more or less correct provided the party who receive the loan and from whom you receive confirm the transaction with PAN and they have reflected the same in their return of income. For your ready reference it may be stated that there is no law which prohibits payment of cash loan in excess of 20,000 in cash.
06 April 2015
Dear Inamullah, If your an auditable assessee then Sec 269SS/269T apply to you. Secondly looking at the practicable aspect, it'd be difficult to explain to the AO relating to these "loans". So tread carefully And with due diligence.
CAclubindia
