Loan taken for personal use by son

This query is : Resolved

DIVYESH JAIN (Querist)
Follow

08 June 2023 Dear Sir,

If a person is having a pending loan can this loan be repaid by her mother in a single transaction. Later in a spam of 4-5 years the person will return her back the amount which she has transferred to the loan account of his son. His mother's name is nowhere mentioned in the loan account. The loan amount balance is of 1 cr.

Is it ok if this transaction happens. Will there be any compliance issue for them from Income tax.

Please help me in this matter.

Regards,
Divyesh Jain

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

08 June 2023 Better option would be to take the amount from mother, and repay the loan amount by son himself.
All transactions should be through banking channel.

DIVYESH JAIN

DIVYESH JAIN (Querist)
Follow

08 June 2023 Yes, but that will take around 3 days to transfer as the amount is huge. They want to save the interest amount of 3 days.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

08 June 2023 That cannot be an excuse, when by RTGS instant transfer of 1 Cr is permitted.

DIVYESH JAIN

DIVYESH JAIN (Querist)
Follow

08 June 2023 Okay. Thanks for your advice. Will suggest accordingly.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

08 June 2023 My pleasure.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Shubham Jain

Sivanath VV

Raviraj ponkshe

SANJAY GAIROLA

Aayesha mulani

Subscribe Now

Loan taken for personal use by son

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA