Loan taken for personal use by son
This query is : Resolved
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
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
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.
All transactions should be through banking channel.
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.
08 June 2023
That cannot be an excuse, when by RTGS instant transfer of 1 Cr is permitted.
08 June 2023
Okay. Thanks for your advice. Will suggest accordingly.
08 June 2023
My pleasure.
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