Loan / Gift from Proprietor company

Sunil (GM) (86 Points)

29 May 2011  

I need expert advise on below..

 My brother has proprietor concern of garment export .
1)Can he issue cheque from this company to me  or my wife showing it as Gift ? Any tax implications for us or him  ?
2)Can he issue cheque from this company to me or my wife showing it as interest free Loan? Any tax implications  for us or him ?

Thanks