kollipara sundaraiah asked 4 years ago
sir,
one of i.t. assess cash loan received(unsecured loans) from realitives and friends and cash loan paid to debtors some amounts.
question:
1.assess cash loan received from realtivies and friends .how much rate of interest (minium and maximum) paid year ending march and interest calculated manadatory or interest free accepted under i.t.act.
2.assess cash loan paid to debtors.how much rate of interest(minium and maximum) collected for year ending march and interest calculated manadatory or interest free accepted under i.t.act.
Rabindra answered 4 years ago
Cash loan paid or Received
First of all we need to understand the restriction on Accepting or repayment of loans, deposits or advance in cash provided under section 269SS & 269T of Income tax Act.
Section 269SS prohibits acceptance of loans, deposits and advances in cash for Rs. 20000 or more.
Section 269T prohibits repayment of loans, deposits and advances in cash for Rs. 20000 or more.
On violation of these section penalty upto 100% of loan amount may be imposed.
Hence for loans above Rs. 20000/- you are advised to use net baking, UPI or other electronic banking system.
Now coming to your questions,
- Minimum and maximum interest rate for unsecured loans from relatives under Income tax act.?
If you have complied with 269SS & 269T, then there is no minimum or maximum interest rate limit provided under income tax act. You may take interest free loans also if you and your relative agreed to the terms then interest rate depends on terms agreed between you.
2. Minimum and maximum interest rate for unsecured loans to debtors under Income tax act.?
If you have complied with 269SS & 269T, then there is no minimum or maximum interest rate limit provided under income tax act. You may give interest free loans also if both of you agreed to the terms then interest rate depends on terms agreed between you.