Unsecured loan from nri
This query is : Resolved
06 October 2018
Can individual take unsecured loan from NRI without interest? And same amount is invested by individual in India then amount is charged for tax? In who's hands?
Is this amount shown as Gift from NRI friend , then amount will be tax??
Is there any option for this?
Please guide...me
Is this amount shown as Gift from NRI friend , then amount will be tax??
Is there any option for this?
Please guide...me
06 October 2018
Resident of India can only borrow money in Indian rupees from NRIs. The conditions under which he/she can borrow are:
Borrowing shall be only on a non-repatriation basis. This means that funds once given cannot be taken back.
The loan can be received only in two ways. The first way is to debit the NRE/NRO/FCNR account of the NRI and give the loan to the Indian resident. The second way is by inward remittance from outside India.
The loan cannot be given for more than three years.
The rate of interest on such loan is fixed. The rate of interest should not be more than two percent above the Bank Rate prevailing on the day of giving of loan.
The repayment of the principal amount and the interest can be done only to the NRO account of the NRI.
In case of gift it will be taxable in the hands of receipient.
Borrowing shall be only on a non-repatriation basis. This means that funds once given cannot be taken back.
The loan can be received only in two ways. The first way is to debit the NRE/NRO/FCNR account of the NRI and give the loan to the Indian resident. The second way is by inward remittance from outside India.
The loan cannot be given for more than three years.
The rate of interest on such loan is fixed. The rate of interest should not be more than two percent above the Bank Rate prevailing on the day of giving of loan.
The repayment of the principal amount and the interest can be done only to the NRO account of the NRI.
In case of gift it will be taxable in the hands of receipient.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- REGARDING ITR FILING QUESTION
- ITC BENEFIT ON BROKRAGE PAID
- Short Term Gain Reporting ITR
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- TDS refund Indemnity Bond
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
