Lending money to friend

maxmoon (Querist) 20 June 2014 This query is : Resolved
sir
i would like to know if i can lend 75000 to my friend on interest free basis.How can we show that in income tax filingwhen i receive back the same amount from him.

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Devajyoti Barman (Expert) 20 June 2014
you can do so by way of accommodation loan.

ajay sethi (Expert) 20 June 2014
give money by cheque only .you can show it as friendly loan

Rajendra K Goyal (Expert) 20 June 2014
Make transaction by cheques only.

maxmoon (Querist) 20 June 2014
but sir,I have heard that friendly loan must not exceed Rs 20,000 and can only exceed in case of blood relation.

Sudhir Kumar, Advocate (Expert) 23 June 2014
you said

"How can we show that in income tax filingwhen i receive back"

No need to worry. Money lent to friends and relatives is not received back.

V R SHROFF (Expert) 23 June 2014
Pay by cheque, get repaid the loan by cheque . Keep Promissory note as proof of friendly loan , also get a PDC , entered as loan repaid.

Will help in I tax +
in case he do not re-pay, u can file 138 ni too.

T. Kalaiselvan, Advocate (Expert) 24 June 2014
Well advised by expert Mr. Shroff, I agree with his advise on the subject.

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