Unsecured loan in cash.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 February 2012
Dear sir,
If an individual receives a cash sum of Rs. 10 lacs from his father as a unsecured loan to employ that sum in his business.
Whether such transaction would be allowed for income tax purpose?
Thanks !
If an individual receives a cash sum of Rs. 10 lacs from his father as a unsecured loan to employ that sum in his business.
Whether such transaction would be allowed for income tax purpose?
Thanks !
CA PARAS BAFNA
(Expert)
13 February 2012
No. He can not take as unsecured loan in cash. He should take it by an account payee cheque.
.
His father must be in a position to explain the legitimate source also.
.
If he can not get opened his father's bank account, even, he is not a fit person to do any business.
.
He can accept the amount as cash gift, but such a gift can also create a problem for both.
.
.
His father must be in a position to explain the legitimate source also.
.
If he can not get opened his father's bank account, even, he is not a fit person to do any business.
.
He can accept the amount as cash gift, but such a gift can also create a problem for both.
.
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