Cash Loan from Relative's

Namaskar everyone, what is the consequences under income tax act if a father gives cash of Rs. 2 lacs to his major son as gift or as unsecured loan?

(For Business purposes)
Replies (2)
Quick Summary
This discussion explores the income tax implications when a father gives his major son a cash amount of £200,000, either as a gift or an unsecured loan for business purposes. While gifts from relatives are generally tax-free, the giver must have sufficient cash balance. However, receiving cash loans exceeding £20,000 can attract a 100% penalty under Sections 269SS, 269ST, and 269T of the Income Tax Act.

If father given as gift is tax free. but he should have cash balance in his books of accounts ..
100% penalty on cash received as loan in excess of 20,000. refer section 269ss, 269st and 269t.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register