Loan out of personal savings from pgbp income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2017 Dear All

A person (individual) has PGBP income and accordingly files ITR 3. He has given a personal loan (interest free) to a third person out of his personal savings (say out of the personal savings made from his drawings from business). Is the first person required to show anywhere the loan provided to a third person and the receipt back of principal loan amount from third person?

RAJA P M

RAJA P M (Expert)
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14 August 2017 Yes. You can show this one. but, not in company books...

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2017 Dear Sir. Thanks for your valuable comment. However, I would like to know that since the person is providing loan out of his personal savings, why is he required to show the same in his books of accounts?