Can unsecured loan be taken or given without any charge of Interest to Relatives????
Will such an arrangement attract provisions of any of the sections of the IT Act. 1961?
shashank garg (Article ) (49 Points)
05 March 2010Can unsecured loan be taken or given without any charge of Interest to Relatives????
Will such an arrangement attract provisions of any of the sections of the IT Act. 1961?
Ashish Sharma
(Service)
(1028 Points)
Replied 05 March 2010
You can take unsecured loan from your relative in cash upto Rs.20000/- no restriction received by cheque
Tarun
(CA Practice )
(166 Points)
Replied 05 March 2010
Hi Shashank,
On parting with an Interest free unsecured loan to relatives amounts to understatement of income and the AO, during the course of assessment proceedings, will add notional amount of interest to the income of assessee.
CAclubindia
