No, for this amount you dont require to give tax provided you have not received this as gift.
Regarding money transfer
Hi, I am planning to buy a land worth 7 crore, I have in my account 1 cr remaining money one of my friend is willing to give me through cheque.. Should I have to pay tax for this amount and is there any legal issues if done so
Asked 6 years ago in Income Tax
Should I make any agreement regarding this?? Will IT department question about the source of this money??
Asked 6 years ago
Yes IT dept will definitely ask for prrof as this is as big amount. You should enter into loan agreement
Hi
Is your friend giving a loan to you?
In case it's a loan, there's no tax or legal issue.
Is there any other convent way of getting the funds from him??
Asked 6 years ago
The best option is to take it through cheque and show it as a loan in you books of accounts.
Or make him a co-owner in the property.
Yes,
Considering the large amount, You should undoubtedly make a loan agreement with your friend.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hello,
No the funds will not be taxed if it will be shown as loan in both you as well as his balance sheet.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Hello,
It is recommended to get a loan agreement made.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
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