INCOME TAX QUERY FY25-26()\
This query is : Resolved
Quick Summary
27 March 2026
• ✔️ Interest from loan to friend → taxable under Income from Other Sources (Sec 56)
• ⚠️ Giving loan in cash may violate Sec 269SS (penalty risk exists)
• ✔️ Trading income can be shown as business if consistent approach followed
• ✔️ Use ITR-3 due to business income
• ✔️ Senior citizen deduction (80TTB) applies only to bank interest—not private loan interest
• ⚠️ Giving loan in cash may violate Sec 269SS (penalty risk exists)
• ✔️ Trading income can be shown as business if consistent approach followed
• ✔️ Use ITR-3 due to business income
• ✔️ Senior citizen deduction (80TTB) applies only to bank interest—not private loan interest
30 March 2026
Thanks very much. ........................................................................................................
Dhirajlal Rambhia
(Expert)
02 April 2026
As per section 185 IT act, 2025.....
(1) No person shall take or accept from another person any loan or deposit or specified sum, except through—
(a) an account payee cheque; or
(b) account payee bank draft; or
(c) electronic clearing system through a bank account; or
(d) any other prescribed electronic mode,
if,—
(i) the amount or the aggregate amount of such loan, deposit, or specified sum; or
(ii) the amount or the aggregate amount of any previously taken or accepted loan or deposit or specified sum by such person from such another person, which is remaining unpaid, whether due for repayment or not, as on the date of taking or accepting such amount as referred to in clause (i); or
(iii) the aggregate of the amounts referred to in clauses (i) and (ii),
is ₹ 20000 or more.
(1) No person shall take or accept from another person any loan or deposit or specified sum, except through—
(a) an account payee cheque; or
(b) account payee bank draft; or
(c) electronic clearing system through a bank account; or
(d) any other prescribed electronic mode,
if,—
(i) the amount or the aggregate amount of such loan, deposit, or specified sum; or
(ii) the amount or the aggregate amount of any previously taken or accepted loan or deposit or specified sum by such person from such another person, which is remaining unpaid, whether due for repayment or not, as on the date of taking or accepting such amount as referred to in clause (i); or
(iii) the aggregate of the amounts referred to in clauses (i) and (ii),
is ₹ 20000 or more.
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