Income Tax: The Income Department in the country has made a big change in its rules. According to the new rules, you may have to pay tax on lending or taking money in cash to friends and relatives.
New Delhi: During the time of Corona, people are often facing financial problems. In such a situation, people provide financial assistance to help their friends and relatives.
But do you know that under Section 269SS of Income Tax, giving or taking a loan of more than Rs 20,000 in cash from a taxpayer is both an offence.
Section 269SS and Section 271 D
According to Section 269SS of the Income Tax Act-1961, any person is prohibited from taking more than Rs 20,000 as cash deposit or loan in his account from any other person.
For this only electronic transfer should be done. According to Section 271D of the law, violating Section 269SS is a punishable offence.
Income tax is also affected
When you lend money to a relative or friend, the bank may ask you questions if the amount returned by them is high.
To avoid any other dispute, you can get a loan agreement prepared. On which your details should be there along with loan amount, repayment date and all other conditions. In this way, you can easily give information to the bank in future.
Keep special things in mind before giving loan
1. Lend only that much money as per your limit. Lending more money than your limit can cost you dearly.
2. Lend only for valid reasons, do not lend if there is no valid reason.
3. Never get signatures etc. on a plain paper and then give it away.
4. Lend money only on the basis of the ability of relatives and friends to return the money.
