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Lent out money to relative in cash

(Querist) 03 January 2018 This query is : Resolved 
I am a Public Sector employee and paid all the Taxes & filled returns regularly. I had given Money Rs.500000 to my Father-in-law in Cash for which I have a Promissory Note only. Now he is about to return the money. So will there be any legal or taxation if he transfers money to my account? Pl, advise me the suitable solution.
Vijay Raj Mahajan (Expert) 03 January 2018
No tax liability if money now being returned to your bank account, which you paid him although in cash taken out your from your salary bank account.
Sudhir Kumar, Advocate (Expert) 03 January 2018
did you intimate this transaction to your employer within one month?
Kumar Doab (Expert) 03 January 2018
Relate with service rules and check if you can lend and get said promissory note signed and have complied with rules!

Guest (Expert) 03 January 2018
This question was due to be asked by you long before the time of lending the money. Now there is no use of beating the track line of the snake, which is already passed,

Now be ready for punishment administratively as well as legally for your previous transaction and also to face the charge of dowry by you father-in-law after he transfers the money to your account.

Best of luck, if that is your real problem. But never mind it this is your academic problem.
Guest (Expert) 03 January 2018
A great alert for you has been given by Mr. Jigyasu. You may have to be ready for three pronged attack, if your description is truthful. Otherwise, forget it. Income Tax department has allergy for cash transaction, as you paid Rs.500000 in cash. Your PSU has allergy from your misconduct for not taking due permission for lending money. Last but not the least, your in-laws and even your own wife may get a great tool in hand against you to blackmail you by labeling the transaction as a criminal offence.

Sudhir (Querist) 03 January 2018
Thanks for your valuable suggestions
Nitish Banka (Expert) 04 January 2018
Dear Sudhir,
Under 269SS of IT act loan transaction above Rs. 10000/- in cash are prohibited.
Guest (Expert) 04 January 2018
You are welcome, but with real problem, if any with you, but not with any academic query like the present one.
Hemant Agarwal (Expert) 04 January 2018
1. The Father-in-Law can execute an Affidavit that he has Loaned /Gifted you (or your wife) the amount, for your minor childs Medical /Education/...., which would be legal and non-taxable to you, provided you declare the same in your Tax returns.

2. Further do not be bothered about the Promissory Note or Dowry charges or Administrative action or other threats, which are Hallucinations by JIGYASU (so called Legal Expert). Retain the "Promissory Note" as a souvenir and keep Trust in the Family.

Keep Smiling .... Hemant Agarwal
P. Venu (Expert) 04 January 2018
These are normal/ordinary transactions in the society. Maybe, it strict interpretation of the Service Rules would entail that intimation ought to have been given to the Employer. However, the lapse does not amount to a misconduct in as much as there was no dishonesty or wrong intention involved.

Since the transaction does not amount to earning, there is no tax liability inherent.
Guest (Expert) 04 January 2018
@ Mr. Sudhir,

I can only wish for your good luck, if you adhere to the advice of both Mr. Hemant Agarwal and Mr. P. Venu.

Guest (Expert) 04 January 2018
In my view both the aspects of legality of nature and mode of transaction as well as the fulfillment of requirements of the service rules on the executive side are equally important.

Honesty and intentions have to be proved, not get proved automatically. At legal parlance, a case goes which way, depends solely on the courts proceedings, not on guesses. Not merely precautions, but procedures also have to be followed, may be in advance or post transactions.

Kumar Doab (Expert) 04 January 2018
There is NO alert or great alert as posed by IT=@PSD 5th,7th,9th post from top and IT’s subsequent good for nothings converting a real query by a LCI querist into IT’s self invented unreal that will NOT end, in this thread also.
Kumar Doab (Expert) 04 January 2018
Nevertheless IT=@PSD has posted IT’s=@PSD’s insatiable urge to litter IT’s self invented sarcasm, nuisance, abuse, tamashaa on self invented word ‘Alert’ also in many threads including recent threads and IT won’t end.
Kumar Doab (Expert) 04 January 2018
Dear LCI Querist @ Mr. Sudhir,
You are welcome.

We don't brand querists and queries as not real!
Guest (Expert) 04 January 2018
@ Mr. Sudhir,

You have been welcome by Mr. Kumar Doab (unreal name), a fake expert, who does not brand the querist and his query as not real. So, you may ask him the solution for your problem. But, is it not surprising, even though he has branded your query to be real, but has not provided even a bit of solution to your problem through any of his 3 (three) continuous vague and irrelevant posts, except demonstrating the state of his unsound mind by mention of irrelevant term "IT-@PSD", "litter", "IT's self invented", etc., etc. You may feel free to ask him what exact advice to your problem he has made for you, if in hiding.

However, for your information, he is neither a law expert, nor a management expert, but often appears on the site to fulfill his lust to play merely a number game to add credits to his score.

Anyway, best of luck, if anyone follows his untold advice.

Guest (Expert) 04 January 2018
@ Kumar Doab,

You have stated, "WE' don't brand querists and queries as not real." By the way, who are the parts of "WE" along with you? Do you mean to say your master lawyers and property dealers, for whom you work as tout or commission agent and get released from the psychiatry bed to make multiples of vague and irrelevant posts just to confuse the querists just with the sole aim to sidetrack the attention of the querists from wrong advice rendered by your masters?.

Kumar Doab (Expert) 04 January 2018

from all of IT's=@PSD's multiple fake ID's many of which have bee blacklisted, blocked,shunted out

from Day 1 in all threads has been posting IT's insatiable, unending urge to litter IT's trademark Tamashaa (IT's own favorite word) per IT's DIE HARD Habit ( IT's own admission) abuse, sarcasm, earn points and advertise IT's BEING ORDINARY MEMBER AS SOME EXTRA ORDINARY QUALIFICATION at many other online portals..............

IT's tirade from day 1, against every single querist, member, Expert, LCI, LCI admin in loudly visible in all threads under IT's profile of multiple fake ID's..........

Senior LCI Experts have posted about the politics in threads


also that the frustration is littered with intent to damage LCI due to GROUSE that LCI has not agreed to pay and remain a portal for self less, free service................

IT could have paid and registered at paid online portals and waited , and waited...........for queries......
Guest (Expert) 04 January 2018
@ Mr. Kumar Doab,

Mr. Kumar Doab is welcome again with his profuse irritation and frustration to demonstrate more clearly the state of his unsound and disturbed mind through another post.
Kumar Doab (Expert) 04 January 2018
Nothing new from all of IT's=@PSD's multiple fake ID's.............

Same words, language ..................

and same tirade against everyone at LCI

and same insatiable urge and GROUSE that WON'T STOP........

Guest (Expert) 04 January 2018
Most irrelevant post seems to be appearing more and more on the part of two experts sidelining the real issue.
Guest (Expert) 04 January 2018
Welcome again Mr. Kumar Doab with your utter frustration and irritation. You are free to demonstrate the state of your profusely unsound/ disturbed mind.
Kumar Doab (Expert) 04 January 2018
A futile attempt by IT=@PSD

to distract, deflect again...............

The previous and last posts are entirely different..........

a futile attempt indeed...
P. Venu (Expert) 04 January 2018
"WE" certainly include all those who fortunate enough to be recognised as EXPERTS by the LCI administration and have been striving to make meaningful contribution to this Forum. WE also hope that "JIGYASU" would be magnanimous enough to raise bar and join US in making some value addition to the cause that the LCI has been admirably championing.
Guest (Expert) 04 January 2018
@ Mr. Kumar Doab,

Welcome again with your disturbed mind along with his associate with false ego.
Guest (Expert) 04 January 2018
@ Mr. P. Venu,

Thanks for the revelation of the fact that you are also an associate of Mr. Kumar Doab, who is totally a fake expert. At present, you may be feeling fortunate of being labeled with the title of expert, merely on account of No of posts (not real contribution) but your present post amply reveals as if that term has filled you with some ego, which prevents you from getting your knowledge updated adequately. On that aspect, you may have to feel quite unfortunate after passage of some time when you start meeting with failures in your professional life in the courts of law. I am sure sure you will remember this saying of mine at some appropriate time during any span of your life. There is a marked difference between a labeled expert and a real expert.

Anyway, I can wish you only the best of luck.

P. Venu (Expert) 04 January 2018
Yes, I am a good friend and associate of Mr.Kumar Doab. He has been making valuable contribution in helping hundreds of querists esp. those in the labour and service sector.

Of course, that does not mean I do not have differences with him. I certainly do not endorse his approach to queries posted as Anonymous and also, making repeated posting. However, differences opinions and outlooks need not affect friendship. The willingness to accommodate the other person's point of view, in my humble opinion, is the real test of friendship or test of real friendship.

And last last but not least, I do not take or make count of the points registered or likes earned by other learned experts, though I have my disagreements of experts seeking likes. It is my considered opinion that Likes or Appreciation has to be earned, not sought.
Guest (Expert) 04 January 2018
@ Mr. P. Venu,

Thanks for revealing your mind. I appreciate that you have certain good principles, like appreciations to be earned, not sought. But one thing is certain, over time you would become aware of the cheating habits and frequent wrong pieces of advice of Mr. Kumar Doab, provided you give some deep thinking about the replies vis-a-vis the real legal implications of his advice. Of course, emotions may not help you detect such wrong doings of Mr. Kumar Doab. When people come here with belief and trust, we must be sincere to their hopes and should restrict our replies only with particular reference to the provisions of law and that too to the point. Multiple confusing and contradictory posts in themselves gives ample indication that the expert responding to the query, himself is not confident about his advice.

Anyway, good night.

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