Hi,
Over the period of time, in 3 years, a friend had borrowed from me a sum of Rs 3.5 Lakhs for his struggling business. The money was given in Cash to him for his expenses. Now he wants to return all that money either in cash or in Account transfer. The amount that I gave was my earning and I had paid all my due income tax on that. If my friend transfer that 3.5L amount in my bank account will that be treated as my income and pay tax on it? What proof should I maintain so that if in future the IT department asks me about this money, I can provide the justification? Thanks in advance....
CAclubindia
