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Interest Free Loan

Murli (Learner) (117 Points)

15 March 2010

Respected Members,

I want to know what will be the income tax implications if someone takes a interest free loan from a friend??

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Chakri (Student) (25 Points)
Replied 19 May 2010

Sir / Madam,

My father-in-law is in need of money for his daughter's [my sister-in-law] marriage and he is asking me to adjust few lakhs amount. My doubt here is, If I give him an interest free loan for 3 lakhs and can I deduct that amount from my taxable income while filing the return by mentioning this loan information?

If it is confusing - in other words - if i give interest free loan to my father-in-law how the tax implications for me ?

Thanks,

Chakri