Should I go for GTA or Loan deed?

Save Share

This query is : Open

Quick Summary

Tushar Chaudhari is seeking advice on how to declare a £10 lakh loan from his brother in his Income Tax Return (ITR). He wants to know if he should list it as 'Exempted Income' or formalise it with a loan deed. The general advice is to receive the funds via bank transfer and not to declare it as exempted income, as it is a loan, not a gift.

Tushar Chaudhari

Tushar Chaudhari (Querist)
Follow

24 January 2021 Hello sir,

My name is Tushar Chaudhari.

I have to clear my loan, so I am going to take 10 lacs from my brother. I am going to repay the whole amount to my brother in future. As per Gift Tax Act, the amount I will receive from my brother is not taxable to me but I want to clarify that should I show it in my ITR as 'Exempted Income' or should I do a loan deed?

Your response will be very helpful for me.

Thank you.
Tushar