TaxTMI 
TaxTMI 
Amount given by Acquaintance for utility or personal expense, is it taxable?
Receipt in Bank and returning amount in cash and not full amount is returned. What is the taxability?
Amount given by Acquaintance Taxability
29 Jun 2026 
2 Replies 
234 Views Asked by
Taxability of acquaintance receipts turns on whether the sum is a loan or a gift, with section 56(2)(x) and cash repayment rules applying.
Taxability of amount received from an acquaintance depends on whether it is a bona fide loan or a gift. A bona fide loan is not taxable on receipt or repayment. If treated as a gift from a non-relative and the receipt exceeds the prescribed threshold, the entire amount received is taxable as Income from Other Sources under section 56(2)(x). Any cash repayment of a loan must comply with section 269T. (AI Summary)
Taxability of amount received from an acquaintance depends on whether it is a bona fide loan or a gift. A bona fide loan is not taxable on receipt or repayment. If treated as a gift from a non-relative and the receipt exceeds the prescribed threshold, the entire amount received is taxable as Income from Other Sources under section 56(2)(x). Any cash repayment of a loan must comply with section 269T. (AI Summary)