I have loaned to relative 1 lakh cash , is this wrong ?

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

Replies (1)
No problem in giving loan by cash to you. But it may create probleme to ur uncle as he received loan by cash. As per section 269SS taking loan by cash and 269T repayment of loan taken by cash may attract penalty equivalent to loan amount. Therefore i advice u to show this amount as gift paid to uncle. Otherwise there is no way to evade penalty.

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