unsecured loan

No limit. But the interest amount will reported in audit report and make sure that the loan is received throuch crossed account payee cheque

Regards

Piyush

Yes, Father can give loan to his son through cheque if loan amount exeeding Rs. 20000/-. There is no limit for loan.

Thanks,

Lovenish Bansal

Yes, Father can give loan to his son through cheque if loan amount exceeding Rs. 20000/-. There is no limit for loan.

Thanks,

Lovenish Bansal

yes

father can

no limits

There is NO LIMIT for loan given from father to son. BUT if the loan amount exceed Rs. 20000/-, it has to be given ONLY through Account Payee Cheque or Account Payee Bank Draft. Even such loan when repaid should be by Account Payee Cheque or Account Payee Bank Draft only.

Further, the Interest paid by son to father on such Loan should be shown in the Audit Report Form 3CD of the son's business under Clause 18 "Payment made to Relatives" covered u/s. 40A(2)(b).

I agree with everyone, Just I want to mention herewith that pay the interest @ market  rate  i.e should be reasonable, otherwise time of scrutiny, keeping in the mind of relation AO may disallow interest to some extent. It is advisable not to make provision. Pay it by cheque.