Interest free loan

This query is : Resolved

SUBHASH JAIN (Querist)
Follow

04 October 2011 CAN WE TAKE INTEREST FREE LOAN WITH RELATIVE AND OTHER. IN THIS REGARD WHAT IS THE INCOME TAX RULES , PLEASE ASSIST ME.

CA. Deepak Narula

CA. Deepak Narula (Expert)
Follow

04 October 2011 Yes, there is no restriction in taking interest free loans from relatives or other. Please keep in mind the provisions of section 269SS and 269T and do not take/repay loan/advance more than Rs. 20000/- other than account payee cheque or bank draft.

SUBHASH JAIN

SUBHASH JAIN (Querist)
Follow

04 October 2011 ON WHICH GROUND INTEREST FREE LOAN IS ALLOWABLE , WHETHER ONE PART IS SAVING TAX AND ANOTHER PART IS PAYING TAX. I THINK THERE IS TAX EVASION. IF THERE IS IN ACT PLEASE PROVIDE , I WILL BE THANK FULL TO YOU,

CA. Deepak Narula

CA. Deepak Narula (Expert)
Follow

04 October 2011 It is not written expressly in the Act. The only restriction is, unsecured loans must be given/taken through account payee cheque or account payee bank draft.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok