Conversion of unsecured loan into gifts

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2015 I want to know the income tax implications of unsecured loan of brother converted into gift in the books of assessee.

Amol S Joglekar

Amol S Joglekar (Expert)

17 August 2015 No implications as such.

read section 56(vii)

https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2015 I suppose there is nothing mentioned in section 56(vii) regarding conversion of unsecured loan into gifts

Amol S Joglekar

Amol S Joglekar (Expert)

18 August 2015 Never ever anything as such is mentioned in any of the section of the Income Tax Act. It is for you to see if any of the section is HIT or APPLICABLE to you.
Since the gift is from brother, yopu need to check if it falls under the definition of BROTHER as relative.
Prima facie, brother is included in the lsit of RELATIVE and hence the GIFT is not HIT by the said section.

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2015 Thanks Amol for your reply

Amol S Joglekar

Amol S Joglekar (Expert)

05 September 2015 You are most welcome.
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