Info on personal loan

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This query is : Resolved

Harshit (Querist)
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22 August 2013 Hi,

If I take a personal loan from a friend... by law do I have to pay him interest on the loan taken (He does not want interest)

Second query is can I make an fd with the personal loan taken?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 August 2013 The ans is no.Int to be charged or not depends on the lender of loan.
Yes u can make FD from it but int income if exceeds 10,000 then tds will be deducted and it will be your income from other source.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 September 2013 There is no bar in taking any amount as loan but that should be taken through an account payee cheque. You must sign the letter of confirmation which your friend and you might require at the time of scrutiny assessment.

Your friend can give you interest free loan upto the amount of his capital but if he has landed you money by taking loan then he will have to charge the interest from you.

If you make the FD then also there is no bar and as suggested by the expert you have to get TDS deducted and show this as income

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