Lending Money to a Friend

Legally it will be defficult to recover.

(Legally it will be defficult to recover) i agree with mr, shashikumar  sir

I agree risk of default is there. But in case I have a document on stamp paper to make sure I lent him the money would reduce the risk.

What is the tax liability on such lending?

r sir

R U LEND MONEY OR YET TO BE LEND? IF NOT LEND YET,THEN LEND THROUGH CHEQUE, & AS SECURTY U RETAIN POST DATED CHEQUE.

Mr. Ankit,

You want to lend.  As per income tax provisions any transction above Rs. 20,000/- has to be by cheque and not in cash.

you have to obtain  a Deman Promisory note if you want the amount to be returned to you on when you make a demand within 3 years. if the period is longer then you have to enter into a term loan agreement mentiong proer conditions of contractual obligations. you are wlcome

Mr.Ankit,

      considering Incomtax law. you must obtain cheques each of Rs 25000/ from him so as to secure your lending. letteron you can deposit the same to recover your amount. further  obtain promisery notes each of Rs 25000

JN Madalani