Interest Free Loan From An Individual For A Charitable Trust Exempted U/s. 80G(5) of the I.T.Act
This query is : Resolved
Quick Summary
16 January 2023
This a charitable trust Registered as a Society and is exempted u/s. 80G(5) of the Income Tax Act, 1961 (the "Act"). An individual wants to give an amount of Rs. 5 Lakh to this trust free of interest. The principal amount has to be repaid to him over a period of time.
The bye laws of the Society permit the Society to accept amounts from outside parties with / without securities.
Queries :
1) Should the amount received by the Society be shown as "Loan" in it's Financials ?
2) Is there any restriction under the Income Tax Act for the Society to accept this loan of Rs. 5 Lakh ?
Shall be thankful if a reply is received quickly.
Best Regards.
The bye laws of the Society permit the Society to accept amounts from outside parties with / without securities.
Queries :
1) Should the amount received by the Society be shown as "Loan" in it's Financials ?
2) Is there any restriction under the Income Tax Act for the Society to accept this loan of Rs. 5 Lakh ?
Shall be thankful if a reply is received quickly.
Best Regards.
16 January 2023
1. Yes its unsecured loan..
2. No, provide it is through any banking channel..
2. No, provide it is through any banking channel..
Message likes :
1 times
16 January 2023
1 yes.
2 No restrictions in case of interest free loan.
2 No restrictions in case of interest free loan.
Message likes :
1 times
16 January 2023
Thank you very much Dhirajlal Sir & Seetharaman Sir.
Best regards.
Best regards.
Message likes :
1 times
16 January 2023
You are welcome.....
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- Rental income gst and it purpose
- Eway bill generation from place other than registeted
- GST rate and HSN code for sale of racing horses
- Management System (IMS)
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Condonation . E-Verification of last year return .
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
