Unsecured loan- not repaid
This query is : Resolved
27 February 2019
Hello experts,
My query is related to my previous query!!!!!
This time the unsecured loan is not repaid by Father to his 'Son', Son Dies and unsecured loan repayment not being paid by father to his son.
There's is no 'WILL' and 'Legal Heir' were made to conclude the same.
What will be the treatment of unsecured loan in the Father Balance sheet?
Shall I capitalized it or treat it as an income and pay tax on the same?
My query is related to my previous query!!!!!
This time the unsecured loan is not repaid by Father to his 'Son', Son Dies and unsecured loan repayment not being paid by father to his son.
There's is no 'WILL' and 'Legal Heir' were made to conclude the same.
What will be the treatment of unsecured loan in the Father Balance sheet?
Shall I capitalized it or treat it as an income and pay tax on the same?
28 February 2019
Capitalise, no tax payable being amount received from relative.
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28 February 2019
If the amount of unsecured loan is been treated as share of that particular assessee in family selletment deed by the legal hiers of the deceased. Then the above loan can be capitalized. There would be no tax implications
28 February 2019
And if the same unsecured loan was unpaid by the brother instead of father, then what will be the treatment ?
01 March 2019
Same treatment as both are relative.
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1 times
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