Loan from family member for 2nd home

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krishna (Querist)
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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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

krishna

krishna (Querist)
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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 ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 August 2018 Yes promissory note is enough no need of notorized.

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Loan from family member for 2nd home

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