Borrowing from nri friend
This query is : Resolved
13 November 2017
Hi
Pls help in understanding paperwork and tax implication involved if I am borrowing money (around 30lacs) for setting up business from an NRI friend Thanks
Pls help in understanding paperwork and tax implication involved if I am borrowing money (around 30lacs) for setting up business from an NRI friend Thanks
13 November 2017
A person resident in India, may borrow in INR from NRIs/PIOs after satisfying the following terms and conditions:
Borrowing shall be only on a non-repatriation basis;
The amount of loan should be received either by inward remittance from outside India or by debit to NRE/NRO/FCNR(B)/NRNR/NRSR account of the lender, maintained with an authorised dealer or an authorised bank in India;
Period of loan shall not exceed 3 years;
Rate of interest on the loan shall not be more than two per cent above Bank Rate prevailing on the date of availment of loan;
Payment of interest and repayment of principal shall be made only to the NRO account of the lender.
Income tax applicable on the interest payments.
Borrowing shall be only on a non-repatriation basis;
The amount of loan should be received either by inward remittance from outside India or by debit to NRE/NRO/FCNR(B)/NRNR/NRSR account of the lender, maintained with an authorised dealer or an authorised bank in India;
Period of loan shall not exceed 3 years;
Rate of interest on the loan shall not be more than two per cent above Bank Rate prevailing on the date of availment of loan;
Payment of interest and repayment of principal shall be made only to the NRO account of the lender.
Income tax applicable on the interest payments.
13 November 2017
A person resident in India, may borrow in INR from NRIs/PIOs after satisfying the following terms and conditions:
Borrowing shall be only on a non-repatriation basis;
The amount of loan should be received either by inward remittance from outside India or by debit to NRE/NRO/FCNR(B)/NRNR/NRSR account of the lender, maintained with an authorised dealer or an authorised bank in India;
Period of loan shall not exceed 3 years;
Rate of interest on the loan shall not be more than two per cent above Bank Rate prevailing on the date of availment of loan;
Payment of interest and repayment of principal shall be made only to the NRO account of the lender.
Income tax applicable on the interest payments.
Borrowing shall be only on a non-repatriation basis;
The amount of loan should be received either by inward remittance from outside India or by debit to NRE/NRO/FCNR(B)/NRNR/NRSR account of the lender, maintained with an authorised dealer or an authorised bank in India;
Period of loan shall not exceed 3 years;
Rate of interest on the loan shall not be more than two per cent above Bank Rate prevailing on the date of availment of loan;
Payment of interest and repayment of principal shall be made only to the NRO account of the lender.
Income tax applicable on the interest payments.
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