interest free loan
This query is : Resolved
07 November 2009
can a person give interest free loan to persons whose not having any blood relations with the loan taker, ie freinds, relatives, etc..?
CA.SHAHZAD SAYYED
(Expert)
08 November 2009
Dear Apurva
in case of Individual it does not matter but however in case of Firm & Co. they have to prove that there is no indirect benefit obtain by giving interest free loan
in case of Individual it does not matter but however in case of Firm & Co. they have to prove that there is no indirect benefit obtain by giving interest free loan
08 November 2009
My view is slightly different from above. Even in case of individual blood relation is very important. Many courts have given there view that for gift there should be blood relation. Hence in absence of blood relation it will be difficult to prove gift
Kishanlal Paliwal
(Expert)
13 November 2009
The query is initialised with regard to Loan, not to Gift and asked for the consequence for Interest Free Loan!
In the case of loan, chargeability of interest depends upon the parties enter into transaction.
However, in case of Firm or Company, it is required to disclose that no indirect benefit is derived on account of giving interest free loan.
In the case of loan, chargeability of interest depends upon the parties enter into transaction.
However, in case of Firm or Company, it is required to disclose that no indirect benefit is derived on account of giving interest free loan.
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