Loan amount from non resident accepted in it act

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Kollipara Sundaraiah (Querist)
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25 February 2022 Sir,
It assessee loan purpose amount received from non resident person (friend )rs:15 lacs through on bank mode after 2 years amount repayment to non resident person.
Question:
Assessess above mentioned loan amount transaction accepted or not accepted.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 February 2022 A resident person in India, (individual and not a Company) may borrow in INR from an NRI subject to the following Terms and Conditions-
i. Borrowing shall be only on a non-repatriation basis ie repayment of the loan would be done only in India and the borrower cannot repay the loan outside India to the NRI. The repayment of the loan to be done only to the NRO account of the NRI.
ii. The loan amount can be received by the Borrower in India ether by inward remittance from outside India or by debit to the NRE/ NRO account maintained with an authorized bank in India.
iii. The term of the loan should not be more than 3 years. Which means that the loan shall be repaid within a period of 3 years.
iv. The interest on the loan shall not exceed more than two per cent above Bank Rate prevailing on the date of availing the loan.
v. Payment of the interest amount and the repayment of the principal of loan shall be made only to the NRO account of the NRI lender maintained in India with an authorized bank.

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