Getting money from friends


Hi, 

I am planning to get some money (huge amount) from my friend what are all the legal things we should be followed so that we should not end up in some trouble and how we can do the transaction. Please help me. Thanks in Advance.

Best Regards

Nagappa S

 
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lawyer

Dear Nagu,

Under Section 269SS of Income Tax Act  you cannot do cash loan transaction above Rs. 10000/- therefore you have to do transaction by cheque or demand draft only. You need to have an agreement executed between both of you to legally validate the transaction.

You may also read my article about friendly loan to add your knowledge

Adv Nitish Banka

9891549997

lexspeak.in

 
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Thank you so much Nitish,

 

I am planning to get some more than 5 lakhs rupees. when i get money do i need to pay taxes for it ? Thank you so much in Advance.

 

Best Regards

Nagappa S

 
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