Lending to a friend
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 March 2012
Hi,
I have given rs.4.5 lacs loan to my office friend over a period of 2 years through bank transactions.all money given are in record of my bank statement. he is yet to return this money.
Are there any income tax or audit issues in this regard?
Kindly help.
thanks and regards,
Gagan
I have given rs.4.5 lacs loan to my office friend over a period of 2 years through bank transactions.all money given are in record of my bank statement. he is yet to return this money.
Are there any income tax or audit issues in this regard?
Kindly help.
thanks and regards,
Gagan
04 April 2012
There is NO tax implication in the above case.
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 April 2012
Thank you for the reply.
I have one more query.
I had taken loan from one friend for some purpose and give some money out of it as loan to another friend.
Both were without interest.
What are tax implications in this case. Also, is it important to justify the reasons for loan taken or it can be like personal loan without any obvious reasons.
rgds
I have one more query.
I had taken loan from one friend for some purpose and give some money out of it as loan to another friend.
Both were without interest.
What are tax implications in this case. Also, is it important to justify the reasons for loan taken or it can be like personal loan without any obvious reasons.
rgds
04 April 2012
There is no tax implication in this case also.
It is not important to justify the reasons for taking/giving loan.
Only ensure one thing.
The lenders should be able to substantiate the source of their income.
It is not important to justify the reasons for taking/giving loan.
Only ensure one thing.
The lenders should be able to substantiate the source of their income.
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