Transaction limit to non-family bank account

Taxation
1

I wanted to help my Rakhi sister (not a blood relation) by lending her 10 lakh money for investment and trading. Is it safe to transfer 2 lakhs to her bank account every day (a total of 10 lakhs in 5 days)? Will the ITR question the transaction?

Is there any weekly and monthly transaction limit that can lead to the IT department questioning me?

2

@Quicko

3

Hello @Jack_R,

There is no such limit in the Income Tax Act on the transfer of money which may or may not lead to assessment.

You can give a loan to your friends/ family for trading and investing and that should be correctly reported while filing the ITR.

Hope this helps!

4

Correctly reported as in? Who should report it and what should be reported?