Right procedure to loan to relative ?
Querist : Anonymous
one year ago i have loaned to my maternal unlcle 2 lakhs cash without charging interest ( Rs 50-50 thousends in 4 months ) . I am a tax payer . i run a coaching . Since in my family my brother , mother and father has their own income from business and salary thats why whatever i earned i loaned to my uncle for 6 months in cash ( in cash because i dont have cheque book and sice i get money in stallements by students thats why i never have bulk amount of money in my bank account ) . one day ,One of friend told me that the way i loaned my uncle is wrong but he dint clear me why ...
My question is ..
1) since i have already given loan in cash , is this wrong ?
2) Now if my uncle wants to return money , what procedure should i approach so that to avoid wrong transaction ?
3) will i have to prepare a stamp to make that transection right ?
please show me some way
Under Income Tax, there are some restrictive provisions...pls go through section 269SS and 269T
Now that whatever has been done has already happened, you need not take tension of the same.
(By the way.... in today's world.. when even we r heading towards JAN DHAN scheme... you are NOT having a Bank Account is slightly CONTRADICTORY...isnt it?.. You are having internet but NOT a bank account...)
Querist : Anonymous
Henceforth, as you rightly said, you will take care of those 2 sections along with any amendments that might come in due course of time.
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