Can I receive 50 lakhs from friend via RTGS or there will be issues ?

[User_f4919d29]

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User_f4919d29
PARTICIPANT
February 23, 2025 at 2:11 pm

For context, I am looking to buy a house and taking some amount from friend as a loan to clear as much principal as possible. I’ll be taking a loan too.

Will there be any issues if I receive them in single transaction? Or do I need multiple transactions? Any other advice.

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[Vedantninja530]

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Vedantninja530
PARTICIPANT
February 23, 2025 at 2:29 pm

Why not cash?

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[User_f4919d29]

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User_f4919d29
OP
February 23, 2025 at 2:30 pm

Can’t get that much as cash. Want to keep trail as well.

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[Vedantninja530]

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Vedantninja530
PARTICIPANT
February 23, 2025 at 2:37 pm

What is his source of funds?

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[User_f4919d29]

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User_f4919d29
OP
February 23, 2025 at 2:37 pm

His own money from job

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[Superjeevan1561]

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Superjeevan1561
PARTICIPANT
February 23, 2025 at 2:38 pm

No harm in receiving.

Keep it documented i.e.:
1) State the purpose of the loan (friendly loan)
2) Interest if charged @ ___%
3) Amount
4) Tenure (when you have to repay it and how many instalments)
5) Mode of remittance (RTGS)
6) That the amount he is sending is from a tax accounted account.

I wrote all this because it is (1) good to have (2) will maintain good relation with your friend (3) Answer bank (they will definitely ask source of funds and purpose and will need it for RBI reporting purposes) and income tax queries.

Good luck.

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[User_f4919d29]

U

User_f4919d29
OP
February 23, 2025 at 2:40 pm

I had a question which I asked another person who advised me about IOU

Does IOU need to be notarized or on stamp paper? I see option to get one online without it.

Is IOU okay or do I need to have loan agreement?

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[Primeowl5754]

P

Primeowl5754
PARTICIPANT
February 25, 2025 at 12:48 am

Make a hard copy agreement with clearly spelt out clauses. In case you decide to go to court, IOU will get you nowhere!

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[User_4e7642b2]

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User_4e7642b2
PARTICIPANT
February 23, 2025 at 2:46 pm

Check with CA. IT dept can treat this as income and ask you to pay tax.

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[Desishark6045]

D

Desishark6045
PARTICIPANT
February 23, 2025 at 2:55 pm

no harm in receiving any amount of cash as bank transfer.

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[Calmsanjeev4987]

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Calmsanjeev4987
PARTICIPANT
February 23, 2025 at 4:09 pm

been there did that, no IT raids…yet

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[Karanbear966]

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Karanbear966
PARTICIPANT
March 1, 2025 at 11:37 am

You sure about that?

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[Indianeagle6050]

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Indianeagle6050
PARTICIPANT
February 23, 2025 at 3:45 pm

Treat that as unsecured loan in books. Pay interest and TDS applicable timely. Should not be a problem.

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[User_f554e603]

U

User_f554e603
PARTICIPANT
February 23, 2025 at 4:58 pm

RTGS is one of the most legal and amsafe way to get money. Just tell your CA and he will declare it as unsecured loan.

Don’t worry at all. You can take crores, as long as you us it for legitimate things.

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[Megaprashant4593]

M

Megaprashant4593
PARTICIPANT
February 23, 2025 at 7:45 pm

You can recieve the amount from your friend. Get your CA to draft a document for the transaction – indicating the reason and terms of transfer.

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