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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Non filing of I T Returns
- UDIN ISSUE
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- TDS on purchase of under construction property from a reseller
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
