Interest Free Loan From An Individual For A Charitable Trust Exempted U/s. 80G(5) of the I.T.Act
This query is : Resolved
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..
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16 January 2023
1 yes.
2 No restrictions in case of interest free loan.
2 No restrictions in case of interest free loan.
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16 January 2023
Thank you very much Dhirajlal Sir & Seetharaman Sir.
Best regards.
Best regards.
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16 January 2023
You are welcome.....
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