Borrowing Money through Bond
Querist :
Anonymous
(Querist) 28 December 2015
This query is : Resolved
Hi!
I have heard from someone that a person can lend a certain amount for a specific period to the borrower by taking his signature on a bond paper in which it mentions the name of the lender and borrower, the borrowed amount, the date on which the amount was borrowed and till when or which date the borrower needs to return/repay the total borrowed amount to the lender. And if he/she fails to do so then the lender can take legal actions against the borrower.
I want to know is it true?
If Yes, then what is the name of that Bond which is use for such kind of monetary transaction?
And apart from it I wud also like to know, Is there any maximum limit of amount in rupees which can be lend to the borrower thru Bond paper and Is there any maximum time limit which can be given or mention on the bond paper for lending amount to someone?
Can someone please answer my queries...??
Kindly revert with proper details and explanation.
Thanking in advance.
Adv. Yogen Kakade
(Expert) 28 December 2015
Hi,
The facts of the case mentioned by you indicates that you want to execute a promissory note.
You can execute the same on a General stamp paper.. you can lend any amount money which you can justify to the tax records where you earned that amount.. you can also put any time period which you mutually decide.
Surf for the general draft of promissory note on internet.. you will get so many.
Adv. Yogen Kakade
Jurycon Incorporation
Advocates & Consultants
Email: juryconincorporation@gmail.com
Web: www.juryconn.in
Kumar Doab
(Expert) 28 December 2015
Anonymous query so no reply.
Querist :
Anonymous
(Querist) 28 December 2015
Yogesh Sir thank you for your valuable guidance.
Actually due to my family financial problems I'm planning to borrow around 10 to 15 lakhs for a specific period of 10 to 15 years with No additional chargeable interest on the borrowed amount and with flexibility in repayment options from my Dad's friend who is a businessmen and the person is ready to lend me that much amount.
So I want to know if both the parties involved makes a mutual deal by executing the same on the general stamp paper and the promissory note and after receiving the amount in cash or directly in my bank account, Will I be liable to pay any amount of Taxes to the government for the borrowed amount?
Please advice.
Querist :
Anonymous
(Querist) 28 December 2015
Yogen Sir*
Adv. Yogen Kakade
(Expert) 29 December 2015
Hi,
You can go ahead with this transaction.. but few things keep in mind
1. Never do the transaction in cash.. this much of amount transaction in cash is illegal.
2. The taxes will be applicable if you invest this money in business and get profit out of it.. the profit is taxable after deducting the interest paid on the amount.
3. You can also execute a MOU (Memorandum of Understanding) for this transaction for this transaction.
All the best.
Adv. Yogen Kakade
Jurycon Incorporation
Advocates & Consultants
Email: juryconincorporation@gmail.com
Web: www.juryconn.in
Querist :
Anonymous
(Querist) 29 December 2015
Yogen Sir once again thanking you for ur explanations. I wud like to inform that I'll be using that borrowed amount to clear off my family debts, utilize it for my siblings education and marriage expenses in the future.
And now I wud like to know from where to prepare general stamp paper and promissory note for this transaction. What will be the charges, required documentation and the proper procedure to execute the same.
Kindly advice.
K.S.Srinivas
(Expert) 31 December 2015
No reply to the anonymous query.
Dr J C Vashista
(Expert) 01 January 2016
Dear Experts,
Wish you all a very happy, healthy and prosperous new year.
Regards
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Querist :
Anonymous
(Querist) 01 January 2016
Happy New Year to Everyone.
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Nafees
Email: nafees.shk1905@gmail.com
Querist :
Anonymous
(Querist) 01 January 2016
Happy New Year to Everyone.
Regards,
Nafees
Email: nafees.shk1905@gmail.com
