Interest free loan from brother in law

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 I want to take loan from my brother in law (wife's brother)of Rs. 400000 for purchasing a house property.

My Query is that:
1) is it compulsory to give interest on such loan and deduct TDS, (if Yes), than on what rate interest should be given and TDS will be deducted.
2) OR can I take interest free loan

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 Please resolve the query......

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 November 2011 As Individual, you can take interest free loan also. no restrictions on that. even if you pay interest TDS will not attract while individual paying interest to others

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Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 thanks sir,

please give me one another favour, please provide me the section under which above provision is given that

Vikas

Vikas (Expert)
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10 November 2011 U/s 194A. But you should accept and repay amount by proper account payee cheque.

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