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urgent help on Business loan

16 July 2012

Hi,

i recently started a venture real estate development firm, now i have taken a building work order , and in need of some serious finance. so a childhood friend of mine who runs a export business wants to help me out by giving me 45 lacs as interest free and unsecured loan. he will give it to me as an account payee cheque. can i accept that money. what formalities in the perview of Income Tax should be delt with in the first place. i wish to return it in 5 to 6 yrs. the favour is because when he started his business then i had helped with my salary savings. now in 3yrs afterwards he wants to repay me by helping me out with my business concern.

thanks and regards

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2 Replies

ANUP GUPTA (KEEP SMILING fcaanupgupta@gmail.com) (303 Points)
Replied 16 July 2012

1. fIRST OF ALL, YOU NEED TO TAKE LOAN THROUGH A/C PAYEE CHEQUE

2. SECONDLY, TO MAKE THE TRANSACTION MORE ENFORCEABLE YOU MAYENTER INTO A LOAN AGREEMENT BY DRAFTING THE SAME & MENTION CLEARLY IN SUCH LOAN AGREEMENT THAT YOU ARE TAKING A INTEREST FREE LOAN TO AVOID ANY FUTURE PROBLEMS.

3. FOR INCOME TAX PURPOSE ONLY ENTRY THROUGH A/C PAYEE CHEQUE WOULD BE SUFFICIENT TO HELD TRANSACTION LEGAL, BUT IT WOULD BE GOOD IF U ALSO DRAFT A LOAN AGREEMENT.

BEST WISHES FOR YOUR BUSINESS GROWTH & PROSPERITY

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rajarshi sarkar (manager) (50 Points)
Replied 17 July 2012

thanks for the speedy reply. the agreement that you mention dose that need to be registered or unregistered? like on a non judicial stamp paper? if so then what value. can you kindly help me out with a sample loan agreement. can i repay the loan amoumt after say three years in parts for say another 5 yrs. so the totalterm of the loan will be around 8 to 10 yrs. and do i need to show this loan in my IT returns. and does the same apply to my friend. i'm bit concerned as i dont want my friend to invite any problem because of me. so its better i know all the formalities and procedures before i accept the help from him.

thanks and regards