Are there any prohibitions on the purpose for which loans cannot be taken

Question: Are there any prohibitions on the purpose for which loans cannot be taken?

Answer(s)

Raju Kanumuri: The loans cannot be utilized for the purpose of re-lending or for carrying on agriculture or plantation activities or for investment in real estate business.

Your Answer

Related Questions

Q: Does an NRI, FII require any approval from the RBI to invest in mutual funds?

A: No special approvals are required. NRIs/FIIs have been granted general permission by RBI for investing in/redeeming units of funds subject to conditions set out in the aforesaid regulations.

Q: What is the tax liability on redemptions?

A: Under Section 2(42A) of the Income Tax Act, units of the fund held as a capital asset for a period of more than 12 months immediately preceding the date of transfer, will be treated as a long-term...

Q: What is the tax liability for income received from mutual funds?

A: As per Section 10(35) of the Income Tax Act, 1961, income received from mutual fund units specified under Section 10(23D) is exempt from income tax in India and the mutual funds are subject to pay...

Q: Can an NRI have a joint account in mutual funds with a resident Indian?

A: Yes. An NRI investor can jointly own a fund account with a resident Indian or an NRI.

Ask