Promissory note
Guddu
(Querist) 30 August 2015
This query is : Resolved
Can anybody guide me about the promissory note withone rupee revenuestamp. Upto what amount agreement can be made on blank paper with one rupee revenue stamp. Somebody told me that only upto 5000 agreement can be made on blank paper with one rupee revenue stamp.
SAINATH DEVALLA
(Expert) 30 August 2015
1.U CAN USE RS.1/- SIGNED WITH CROSSING AND WITHOUT CROSSING.
2.NO NEED OF ANY WITNESSES FOR PROMISORY NOTE.
3.TAKE 2 OR MORE SURETIES OF FINANCIAL (SOUND) PARTIES.
4.ALWAYS GIVE BY CROSS A/C CHQS.
5.WRITE IT AS CLEARLY IT AS HAND LOAN FOR THE SPECIFIC TIME ON DEMAND.
6. PLEASE TRY TO SHOW SUCH MONEY IN TAXRETURNS OF THE CONCERN YEAR ASSMNT.
7. THE SOURCE OF INCOME MUST BE LEGAL.
8. CONSULT A LEGAL ADVISOR TO AOID ANY ANTI MONEY LAUNDERING PROVISIONS IN DEALING THE CASE.
Section 2(2 3) of the Indian Stamp Act 1899 makes it mandatory for affixing of stamp on any receipt as defined therein above Rs 5000 .[Previously it was Rs 500]
2(23) "Receipt" includes any note, memorandum or writing-
(a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or
(b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
(c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
(d) which signifies or imports any such acknowledgment;
and whether the same is or is not signed with the name of any person "
Guddu
(Querist) 30 August 2015
Dear sir,
Upto what amount can i made a agreement on blank paper with revenue stamp of 1rupee, i am lending rs.300000/- for 1 yr. Is it possible to made agreement on blank paper for lending 300000 as laon or should i make it on stamp paper, and the borrower is not havong any bank acc.so its not possible to take a chq from him, plz advise.
malipeddi jaggarao
(Expert) 31 August 2015
Sufficient guidance is given by expert Sri Sainath Devella. Though 1 rupee revenue stamp is sufficient, you should obtain the signature affixing the revenue on standard promissory note which is available in all stationery shops or you require elaborate narrations, better consult some documentary writer.
SAINATH DEVALLA
(Expert) 31 August 2015
And also obtain local legal advice.
R.K Nanda
(Expert) 31 August 2015
consult local lawyer.
Anirudh
(Expert) 31 August 2015
Section 269SS of the Income Tax Act, prohibits the borrower from taking the amount in Cash.
The Section states that "no person shall take or accept from any other person, any loan or deposit or any specified sum, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account, if - the amount is twenty thousand or more.
Similarly, Section 269T also makes it clear that a person shall not repay any loan otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account, if - the amount is twenty thousand or more.
If he defaults, then several questions will come - whether you are an income tax payee; if so whether you have shown this in your return; if not why not etc. etc.
Therefore, think several times, before giving the loan by means of cash.
Rajendra K Goyal
(Expert) 31 August 2015
Promissory note attracts Revenue stamp.
Agreement should be stamped as per stamp duty of the state. Lending money on agreement on plane paper may not serve the purpose.
malipeddi jaggarao
(Expert) 31 August 2015
Keep the advice of Expert Mr.Anirudh in the mind to avoid Tax problems.
