Respected experts ,
one year ago i have loaned to my maternal unlcle 2 lakhs cash without charging interest ( Rs 50-50 thousends in 4 months ) . I am a tax payer . i run a coaching . Since in my family my brother , mother and father has their own income from business and salary thats why whatever i earned i loaned to my uncle for 6 months in cash ( in cash because i dont have cheque book and sice i get money in stallements by students thats why i never have bulk amount of money in my bank account ) . one day ,One of friend told me that the way i loaned my uncle is wrong but he dint clear me why ...
My question is ..
1) since i have already given loan in cash , is this wrong ?
2) Now if my uncle wants to return money , what procedure should i approach so that to avoid wrong transaction ?
3) will i have to prepare a stamp to make that transection right ?
please show me some way
CAclubindia
