Loan to friend
GAURAV
(Querist) 01 November 2011
This query is : Resolved
Sir, I have suppose Rs.ten Lacs in my bank account. Out of this I give Rs.Eight lakhs loan to my friend by cheque .After some months he return the said amount to me by cheque. Whether Income tax deptt. can say that this returned money is my Taxable income? I mean to say that such type of inward and outward transaction can create some problem to me in future from I.T.Department.
prabhakar singh
(Expert) 01 November 2011
If in the hand of creditor the money is accounted for and tax paid and then the transaction is taking place with some supportive evidence then on its received back creditor shall have no problem.
In the case of debtor,it would be his duty to show his income without which it would not be possible for him to repay such a huge amount.
If the same amount has to move between the two,better it should not be done.
Sankaranarayanan
(Expert) 02 November 2011
Very simple that we go from the first , you said 10 L of money was on your account ,those money came by what sources, and more it was disclosed under taxable income, if then did you pay the tax, if exception then what way you got it, if you have details on the part, then no need to worry,
As for as the rs 8L given to your friend ,r u given that money by mode of cheque , ? then when you got the money, r u disclosed that loan in your account,
Hope the same amount received by way of cheque too then good, is that amount is paid interest free then what basis you have given these details you need to keep in mind , if you need further details about it then give Pm message , i will tell you
J K Agrawal
(Expert) 02 November 2011
Do not worry Gaurav Ji. NO such restriction any where. even not in income tax act.
Income tax officer can ask about any inward and outward amount and if you answer him than it is no problem.
In business it happens daily.
