Cash loan to mother or father

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monika

monika (Querist)
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12 November 2016 CAN WE GIVE CASH LOAN TO MOTHER AND FATHER ?

Sandeep Dharar

Sandeep Dharar (Expert)
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12 November 2016 Yes u can give cash loan to ur relatives.

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monika

monika (Querist)
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12 November 2016 IS THERE ANY LIMIT ?
I WANT GIVE LOAN RS, 4 LAKH IN CASH TO MY MOTHER

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Sandeep Dharar

Sandeep Dharar (Expert)
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12 November 2016 There is no limit mentioned as such. But the loan must b in professional conduct. In simple words, there must not b cascading of tax behind that loan. And if it is loan term, then interest should b provided and TDS provision will get attracted.

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monika

monika (Querist)
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12 November 2016 SECTION 269SS
LIMIT OF RS . 20000
WILL APLY OR NOT IN CASH LOAN TO PARENTS ?

Sandeep Dharar

Sandeep Dharar (Expert)
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12 November 2016 U can't advance loan amount in cash. U must have to involve Bank in advancing the loan amount.