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)
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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.