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Maximum amount loan by cash in Promissory Note


10-Oct-2023 (In Recovery Law)
What is the maximum amount of money that can be loaned by cash and mentioned on a Promissory Note. Will I get into trouble if I loan large amount using cash to a friend/relative?
Answers (1)

Answer #1
863 votes
You cannot give a loan amount in cash more than what you have in your cash balance shown during income tax Or you must prepare the source for that in your book of accounts thereafter you must file in income tax department to prove it. Moreover you can give in different dates and more number of promissory notes.
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