Money bond on stamp paper

Guest (Querist) 04 September 2011 This query is : Resolved
One of my client have to give money Rs,600000 (six lakh)to his friend who want to repay the home loan rs,2,50000 and remaining amount to for the purpose of business.
Now, he want to be in writing something i.e, stamp paper.
If I reduced into writing then what precaution I have to take when making this writing? And the format?

My client also suggest me that if i repay the home loan 250000 (and 450000 for his business purpose) and thereafter take the possession of his house then what should i do?

Payment of6 lakhs is in violation of income tax act .Then what should I do?

Last can I mention the cheque (which my client should take from him as blank cheque ) so that in the event if he will not replay then initiate the 138 case.

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prabhakar singh (Expert) 04 September 2011
Unless money desired to be advanced can be shown and accounted for,its very risky advance.
The house must all ready be mortgaged with some bank is my guess, then a 2nd mortgage with possession by a registered deed can create safety.

Raj Kumar Makkad (Expert) 04 September 2011
While reading, it appears that you are not possessing such heavy amount as shown in your income tax return so you cannot show giving this amount in either way. Once any dispute arises between you (the chances are full after advancement of loan to a friend or relative), various legal questions shall stand before you and it shall become difficult for you to go beyond those questions.

If you are of the view "Neki Kar or Kuwain main daal" only then proceed ahead and get promissory note duly signed by him (though it is not a full proof arrangement because source of money is not clear).

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