loan transaction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2011 IS THERE ANY LIMIT ON LOAN TAKEN IN CASH BY ONE INDIVIDUAL FROM ANOTHER DURING THE YEAR?
FOR EG :A TAKES LOAN OF 18000/- IN JAN THEN RS.19000/- IN MARCH FROM MR.B,WHETHWER THIS TRANSACTION IS TAXABLE?

Kaushal Jha

Kaushal Jha (Expert)
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08 June 2011 Cash Loan can not exceed Rs. 19,999/- at any point of time till the loan is continuing. No matter first loan was taken may be couple of years back, if the said loan continues, fresh loan cannot be taken in cash if the first loan was upto Rs.19,999/-. Even in case, where part payment of first loan has been made and the remaining loan alongwith new loan is less than Rs. 20,000/-, cash loan cannot be taken as the new loan alongwith old loan taken would exceed the limit of Rs. 19,999/-.