Gift instead of unsecured loan

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Vivek (Querist)
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16 September 2012 Dear Sir,
One of the assessee has set up his business in fy 2011-12 and he was invested around 6 lacs in the starting.
As Sec. 269 restricts cash loan more than 20000/- and for being on safe side, can he show Rs. 6 lacs arangement as a cash gift received from his father-in-law (who is a farmar) in last 2 to 3 previous years and which is later on invested by him in his business.

Please advise me.

Praveen Kumar Rathi

Praveen Kumar Rathi (Expert)
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17 September 2012 If u received gift from your father then it will be treated like your own contribution in the business and you r not able to paid interest on that gift.

as far as question of cash then gift in cash is also acceptable.