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Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2011 sir
i want to know "how much loans amount shown in Balance Sheet of an individual" for tax purpose.is there limit? if yes then what is max amount.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 June 2011 (All amounts are in Lacs)
Case -1

Suppose you are a person.
You are having Rs 100/- with you.
You are desirous of giving loan to anybody.
How much maximum you can give ?

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Case -2

Suppose you are the person.
You are having Rs 100/- with you.
You are having a great desire of giving loan to anybody of Rs 200/-.
How will you manage to give?

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In 2nd case you will borrow at least Rs 100 form others.
But the said amount should be borrowed by you from such a person who is just like you, having income tax file, having a capacity to lend as well as having money and the transactions should be done by account payee cheques only.
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So , basically there is no limit for taxation but one should understand his own limitations while lending the money to others.

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