Taxablity U/s 56 (1) (vii)

Loan is not receipt without any consideration, and your advancing to him will not be taxed as gift.

Dear

Gift mean amount which we received , will be treated as our capital, and will be non-refundable.

as per your both question, that amount will be treated as loan non as gift.

;)

Mr. Ankit,

A person will be taxed under S.56 when he receives a sum exceeding Rs.50,000/-  without consideration. Here, the intention of the legislature is that you will be utilising that money without earning it or expending any resources for it.

Loan - When you receive a loan, it is implied that you will be repaying it (with or without interest). So, it is not a gift. A gift is something which you are not expected to repay (at-least when the transaction occurs). Also if you pay interest on it, it is deemed that you are paying some consideration for it.

Transferring for a very short time in friends Bank account - This depends on what your friend has done with it. If ultimately he repays you then its not taxable as gift. But if used for his personal purposes (and he never repays you) it will be taxed as gift.

hii Ankit, you can lend money to your friend and also deposit in his bank A/c but if the amount of loan is more than Rs 20000/- you cannot lend him in cash but only by account payee cheque otherwise the same wil not be taxed u/s 56(1)(vii) but u/s 269ss.

Originally posted by : vkbothra
	Dear Gift mean amount which we received , will be treated as our capital, and will be non-refundable. as per your both question, that amount will be treated as loan non as gift. ;)

true....