Is SECTION 269SS LIMIT OF RS . 20000 APPLY IN CASH LOAN From PARENTS ?
I want to start new business forthis I need cash please suggest cash amount take as gift or loan from relative's
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Cash Loan from relative's
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For Gift received in Cash there is no limit prescribed. However Cash loan will be covered u/s 269SS irrespective of the fact it is received from relative.
Gifts from only specified relatives are exempt u/s 56(2) of the Act. If the gift amount is more than
Rs.50,000, then tax will levied on the entire amount.But, if the amount is less than that, no tax shall be paid.
Rs.50,000, then tax will levied on the entire amount.But, if the amount is less than that, no tax shall be paid.
Cash Loans in excess of Rs.20,000 are taxable u/s. 269SS. Gifts received in cash are exempt if they are received only from relatives as mentioned in Explanation to sec 56(2)(vii) such as mother,father,brother,sister etc.
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