1. Can a person take a personal loan from friends or relatives above Rs 1 lakh at an interest of 24% per annum by cheque or bank transfer, not in cash and accounted for in IT returns?
2. If yes, it can be taken, then will the above interest of 24% PA which would be paid later, can this be treated as expenses and deducted from our income, while filing IT returns?
3. Will the TDS liability fall on the lender or borrower and what would be the % to be deducted/payable for a loan of Rs 1 lakh @ 24%PA ?
4. What would be the maximum period for which this loan can be repaid?
Thanks in anticipation to all.
CAclubindia
