Hi friends,
“B” is a student and no income source but he lend rs.20000/- to his friend “A”.
(“B” takes a hand loan from his father and lend to “A”)
And later “A” issued a cheque to “B” and that gets bounced, and “B” made a case against “A”
The case is in the court now,
Is there any income tax query may raised against “B”
I heard that if any payment above Rs.20000/- is attract income tax law.
Thanks
Suraj
Under Section 264 you cannot provide or obtain loan exceeding Rs.20,000 other than by way of an account payee cheque (generally other than the banking module). Here as B has given loan at Rs.20,000 these sections are not invoked and there wont be any effect of this.
Anyways the interest on such amount become an income for the lender and IT has to be paid on it.
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