INCOME TAX QUERY FY25-26()\
This query is : Resolved
27 March 2026
I HAVE LOANED SOME AMOUNT (CASH) TO MY FRIEND/RELATIVE. I GET INTEREST EVERY MONTH IN MY BANK ACCOUNT FROM THE LOAN. I WANT TO SHOW THIS INTEREST AS INCOME. PLEASE ADVISE. HOW AND WHERE IN ITR SHOULD I DO SO? I AM A SENIOR CITIZEN. I HAVE PROFESSIONAL AND BANK INTEREST INCOME APART FROM STCG AND LTCG THIS STCG I WANT TO SHOW UNDER BUSINESS INCOME AS A TRADER. LTCL 30000 LOSS. TRADING INCOME PROFIT INR 1.25 LACS. TOTAL INCOME IS MUCH LESS THAN 12 LACS.
27 March 2026
• ✔️ Interest from loan to friend → taxable under Income from Other Sources (Sec 56)
• ⚠️ Giving loan in cash may violate Sec 269SS (penalty risk exists)
• ✔️ Trading income can be shown as business if consistent approach followed
• ✔️ Use ITR-3 due to business income
• ✔️ Senior citizen deduction (80TTB) applies only to bank interest—not private loan interest
• ⚠️ Giving loan in cash may violate Sec 269SS (penalty risk exists)
• ✔️ Trading income can be shown as business if consistent approach followed
• ✔️ Use ITR-3 due to business income
• ✔️ Senior citizen deduction (80TTB) applies only to bank interest—not private loan interest
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