Unsecured loan- not repaid

This query is : Resolved

Saroj Jyoti (Querist)
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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?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 February 2019 Capitalise, no tax payable being amount received from relative.

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CA Idris M K

CA Idris M K (Expert)
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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

Saroj Jyoti

Saroj Jyoti (Querist)
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28 February 2019 And if the same unsecured loan was unpaid by the brother instead of father, then what will be the treatment ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 March 2019 Same treatment as both are relative.

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