Is there any harm in me lending some money to my friend by withdrawing from bank and receiving it back in a few days through electronic transfer? I am not sure if there can be some IT related trouble if I do that. Is there any way this sort of money flow can result in some additional taxation on any alleged account by the ITO?
13 September 2011
Any payment exceeding Rs. 20,000/- in cash other than account payee cheque shall be added as your income and equal amount shall also be charged as penalty for violation of the Income Tax provisions