Dear All,
I have taken loan (Rs 55000/-) from my friend and she has deposited the money in my bank. Will this amount (Rs 55000/-) be counted as income.
Looking ahead for support.
Thanks,
Miss Akansha.
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Loan taken.
Replies (12)
Not taxable because it will be returned back to the lender with interest. Prepare a document to record this transaction to be on a safer side.
No this is not included in income because u have 2 return it..
No it is not your income because u took the loan on returning basis if possible u keep the documents for safeside.
It will not be considered as income.but since it is credited in your bank account it is better to keep the documents to prove that it is a loan
It will not be considered as income.but since it is credited in your bank account it is better to keep the documents to prove that it is a loan
you can face penalty by accepting cash loan refer section 269ss of income tax. The penalty is equal to loan amount accepted.
Dear All,
Thankyou for your reply.
Some replied that cash can be accepted but some replied that cash cannot be accepted. I have bben through section 269ss and it states that cash canot be accepted.
But now I have accepted, so please let me know what to do.
Thanks,
Akansha.
Loan in cash cannot be accepted.However if it goes through the banking channel you need not worry.
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No as per section 269 ss ...
cash loan more than 20000 cannot be accepted
Dear All,
Thank you for your reply.
As per section 269ss, while taking loan from friend / relative, we cannot accept cash. It has to be through either by account payee cheque or account payee bank draft.
My query is:
a. That can we accept loan through internet bank transfer.
b. How to do documentation of loan taken from friend / relative.
Thanks,
Miss Akansha.
It will be considered as income bcoz the condition of sec 269ss not satisfied but if u will satisfies the condition u/s 269 t I.e. payment of loan by account payee cheque along with the interest then it will not b consider as income.
And such payment shall be deemed as evidence.
Hi Akansha,
There is no clarity about internet transfer of loan amount so its better to take a conservative view. About documentation, a simple letter mentioning the date,amount, terms of repayment would be enough.
In my view you should offer the loan to tax as income from other sources at normal rates (eg gift from friend>50000). This is because if it is shown as cash loan, the penalty is 100% and if it is classified u/s 68, the tax is flat 30%
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