STOP Before Giving or Taking a Loan to a Friend or Relative 💸 #shorts
0Most of us keep giving money to our friends or relatives or even take a little help and this is where a little documentation is important. You need to make sure you do these 3 things.
1. Try to always give a Loan over Bank Account & not in cash, do you guys still deal in cash? After the Demonetization from Modiji
2. Promisary Note and a detailed loan agreement . "A promissory note is an acknowledgement to pay back debt (on demand or otherwise) and may include some simple terms and conditions. You can Google it or find from nearby Notary offices
3. Gifts from family members are not taxable, neither are the loans. But any gift above Rs 50,000 from a friend (non-relative or anyone who falls outside the definition of 'family' under the Income Tax Act) during a financial year is taxable. However, if it's a loan (with or without interest), it becomes tax-free.
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