Loan from family member for 2nd home
This query is : Resolved
19 August 2018
I am buying my second home and wants to take loan from my mother instead of a bank. But i want to pay her monthly interest just like i have to pay the bank. In this scenario, can i claim the tax on rental income for the interest part that i pay to my mother on monthly basis ?
If yes, what kind of loan agreement need to be made with my mother ? I guess, necessary documents need to be produced while claiming the tax on rental income during IT returns
If yes, what kind of loan agreement need to be made with my mother ? I guess, necessary documents need to be produced while claiming the tax on rental income during IT returns
CA R SEETHARAMAN
(Expert)
19 August 2018
Yes, have a loan agreement in a stamp paper value of 100. Receive the loan payment through bank account and pay interest through bank.
19 August 2018
Thanks for your reply..
Should the loan agreement be notarized ?
what about promissory note ? is it not considered valid document in this scenario ?
Should the loan agreement be notarized ?
what about promissory note ? is it not considered valid document in this scenario ?
CA R SEETHARAMAN
(Expert)
20 August 2018
Yes promissory note is enough no need of notorized.
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