Can unsecured loan be taken or given without any charge of Interest to Relatives????
Will such an arrangement attract provisions of any of the sections of the IT Act. 1961?
Can unsecured loan be taken or given without any charge of Interest to Relatives????
Will such an arrangement attract provisions of any of the sections of the IT Act. 1961?
Yes but not by cash or bearer cheque...
You can take unsecured loan from your relative in cash upto Rs.20000/- no restriction received by cheque
Hi Shashank,
On parting with an Interest free unsecured loan to relatives amounts to understatement of income and the AO, during the course of assessment proceedings, will add notional amount of interest to the income of assessee.
tarun is correct
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