Loan cash
mukesh jain
(Querist) 28 July 2012
This query is : Resolved
Giving cash loan of Rs 2,00,000 to a friend is legal or illegal under income tax act. plz. awnser in detail with income tax section and penalty or imprisonment.
R K JAIN
(Expert) 30 August 2012
Cash loan of Rs. 2 lakh is illegal.
Guest
(Expert) 30 August 2012
You have not made a mention of real problem. Reply to any academic question like yours may not benefit you, rather can harm you if circumstances and background are not stated along with the problem.
However, from the nature of your question, doubt goes, as if you have received the cash from your friend, but you do not seem to intend repayment of the loan amount. Mind it, it is not only one way, if you have not accounted for that amount you can also be in trouble and penalised more heavily than your friend. But, if your friend has genuine soures of income, even if advanced loan in the shape of cash, he will be much more safe than you.
