Cash received by an individual

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Saoli Chakraborty (Querist)
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30 March 2012 Hi,

This is relating to my Income tax liability which I will be calculating for the 1st time. My father had an operation so we needed money which I took from my 2nd cousin (not a relative as per sec 56)rs.1,25,000 (bank transfer)and from a friend rs.99,000(money gram-cash). However, the operation is done by March'2012 3rd week and i don't need that money so have to return it back but it can't be returned in one day, will at least take few days. So I wanted to know whether this cash/bank transfered amount will be taxable to me u/s 56. Also, I don't have my father's mediclaim policy, so can I take exemption of sec80D??
Please help as this is no income, just a need which arouse and now I will have to return back the amount. If taxable, then can I do anything before 31st march so as not to make it taxable?

Thanks in advance.

Regards,

Saoli Chakraborty.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 March 2012 Since the sum of money received by your are NOT gifts (they are in the nature of loan), they are not taxable u/s 56(2)(vii).

You cannot get deduction u/s 80D since deduction u/s 80D is available only for INSURANCE PREMIUM and NOT for expenditure.

Saoli Chakraborty

Saoli Chakraborty (Querist)
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30 March 2012 Hi,

Thanks a lot for your reply. I was wondering that it was in the nature of loan, but I had this query that do i need to show anything as loan because its informal and I don't have any formal documents for the loan.
As I have never filled in ITR (was always into audits)and this would be for the first time, I was just making sure.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 March 2012 No you do not need to show in the ITR.

Saoli Chakraborty

Saoli Chakraborty (Querist)
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30 March 2012 ok. thanks a lot for your promt reply.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 March 2012 You are welcome. You should use the thanks button to convey your thanks.

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