You can give such loan to your friend without interest as a friendly loan. Since the amount of loan is more than Rs. 20,000/-, as per the provisions of the Income Tax Act, you should give this loan by way of account payee cheque and likewise the repayment of this loan should also be received by account payee cheque.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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