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Loan from Individual

NITIN SABOO (344 Points)

25 February 2020

Can individual take a loan from other Individual? please suggest

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12 Replies

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 25 February 2020

Yes . Otherwise than cash.

Must be online modes

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NITIN SABOO (344 Points)
Replied 25 February 2020

Sir, I want to invest in my business as additional capital. can I take loan from my friend in saving account through RTGS, please suggest, how much amount I can take from my friend or any other Individual.

sabyasachi mukherjee (27274 Points)
Replied 25 February 2020

Nitin

u can easily take loan from individual in cash..
personal relation
..

Nandakumar K Konkar (Partner) (246 Points)
Replied 25 February 2020

Kindly note that cash transactions of all types exceeding Rs. 2 Lakhs are prohibited u/s 269ST, either in single day or for a transaction (on multiple days) or in respect of transactions relating to one event or occasion.

This does not apply to acceptance of loans, where acceptance of loans exceeding Rs. 20,000 in cash is prohibited.(Sec 269SS)

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 25 February 2020

For safe side take loan by way of online modes like Googlepay/Phonepe/Paytm

NEFT/RTGS/IMPS.

There is no limit on loan for online modes

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NITIN SABOO (344 Points)
Replied 25 February 2020

Dear All Experts,
My query is :-
I am Sole proprietor and I want to take loan from my friends or from others to invest in my Trading Business (Not a Money lending Business). can I take loan through Banking Channels in my Saving Account on payment of Interest condition. should this type of Loan would attract Poonji Ordinance which came in 21.02.2019. please advice

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 25 February 2020

You can take loan from friends.There is no restriction.Since it is in the ordinary course of business, Ponzi ordinance will not attract.

Ponzi ordinance is completely different.Ponzi ordinance is for the people who collect huge money from public and their business is similar to banks,NBFC and financial institutions

Kapadia Pravin (17259 Points)
Replied 25 February 2020

This individual loan transaction by banking channels is very much allowed under Income Tax Act.

You can also claim interest paid on such loan as expenses against business income.

By banking channels there is no loan limit.
ANY AMOUNT.

(Loan upto 20000/- is permitted in CASH.)

Ponzi Scheme Ordinance is applicable to those defined entities in that Ordinance.

Not Applicable to your case.