Writing off of unsecured loan

This query is : Resolved

Mahabir Prasad Agarwal (Querist)
Follow

03 February 2026 One of my relatives has refused to refund my unsecured loan of Rs. 20.00 lac paid by me vide cheque before 8 years. He had shown interest payable on loan each year in his Income tax file and also had deducted tax at source. He had already claimed deduction against interest payable to me. On demand, he is showing his inability to refund me the same and threaten me to file case. I don’t want legal action. I am going to write off the said loan in my Income tax file. I only want reversal of his claimed interest on my loan and also addition to his income against writing of my loan. For this, what should I do ? Where to complain ?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

04 February 2026 You cannot achieve your objective through Income-tax law alone

Writing off the loan only affects you, not him

His interest deductions cannot be reversed

Loan amount cannot be taxed in his hands unless he records waiver

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok