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Investment by nri in sole proprietorship establishment
My friend has started business as Sole Proprietorship Establishment but need running capital and I wish to help him.
Can I loan to him funds from NRE Account by RTFS Transfer or can I remit directly from Overseas to his Sole Proprietorship Current Account.
What will be the Income Tax law in this regard.
Thank you
Regards
Replies (4)
Either way its possible, and no tax liability at present, But repatriation of the loan amount will only be after getting prior permission.
| Originally posted by : Dhirajlal Rambhia | ||
 |
Either way its possible, and no tax liability at present, But repatriation of the loan amount will only be after getting prior permission. |  |
Respected Shri Dhirajlal Rambhia,
Greetings!
Please accept my sincere apologies for the late response.
If of no repatriation what would be accounting entry in the accounting books of my friend - Kindly guide.
thank you
Sincere Regards
Refer the attachment, likely to be modified by RBI from time to time.
Respected Shri Dhirajlal Rambhia,
Greetings!
1. Many thanks for your swift response and guidance through file attachment which is of immense help.
Sincere Regards
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