Receiving money from friend as repayment of educational expenses

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A person is seeking advice on how to declare a repayment of educational and travel expenses from a friend. The repayment amount, including indexation, significantly exceeds the original sum. The user wants to understand how to account for this in their income tax filing, specifically differentiating between loan repayment and a potential gift, and the associated tax liabilities.

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(Querist)
25 October 2023 Paid for friends education and travel expenses in early 90s, now the person wants to repay the amount.

How to account this while filing income tax?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
25 October 2023 Recive it through banking channel.
How much is the amount.
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Chandra Meghraj

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Chandra Meghraj (Querist)
26 October 2023 I spent about 10 lakhs for the person
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Chandra Meghraj

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Chandra Meghraj (Querist)
26 October 2023 Person is planning to pay 20L, current value with indexation is 5593000.
How to account this while filing income tax returns?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
26 October 2023 Consider 10 lacs as repayment of loan and balance 10 lacs as gift from friend. Tax payable on such gift.
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Chandra Meghraj

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Chandra Meghraj (Querist)
26 October 2023 Thanks for your guidance.
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