i would like to discuss following matter and seeking a useful advice for the same..
one of a client have given a unsecured loan (by cheque 10 yrs ago) to one of his relative and receives interest by credit entry in account... (after deducting TDS on the interest)
now the client wants to transfer this entry name of his son.. Question is:
whether transfer by entry is possible or not..
Entry
Client A/c .. dr to Client Son's A/c
i like to know ... any tax implications on this,,, is it possible to transfer loan by book entry or not...
is there any way to transfer other than actual funds transfer entries...
01 April 2012
Dear sir, In your case, Better course of action would be to receive back the fathers loan by cross account payee cheque & hanover another cross cheque as loan and sleep in peace, in other case both father and son will be involved during assessment proceeding.CA.R.P.Shukla, allahabad, 9415444017
CAclubindia
