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Cash Loan from relative's

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Raja Babu

35 Points Posted on 26 April 2020

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

Replies (3)

Quick Summary

This discussion clarifies the rules around cash loans and gifts received from relatives, particularly parents, for starting a new business. It explains that while gifts from specified relatives up to £50,000 are generally tax-free, cash loans exceeding £20,000 are subject to Section 269SS of the Income Tax Act, regardless of the source being a relative.

Nishant Baid

Audit firm

25 Points Posted on 26 April 2020

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.

Kiran Hathalia

460 Points Posted on 27 April 2020

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.

queryinsta054@gmail.com

140 Points Posted on 27 April 2020

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.