Education loan taken by assesse, borrowed money from parents

Tax queries 197 views 4 replies
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Student
187 Points Joined January 2012

Hi Friends,

 

My client is an Individual who took education loan 3yrs back and repaying it. He borrowed money from parents and sister to repay loan. Parents and Sister transferred amounts to his account and thereafter he repaid full loan and closed the loan account. Now the question is amount credited by his family members into his account will be treated as his income ?? Please tell me the treatment for the same while filing return for the Client.

 

Thank You !!

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On 27 July 2017 at 09:01 Report
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1138 Points Joined March 2017
No the loan taken won't be considered as income, neither the paybacks.
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On 27 July 2017 at 10:44
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1138 Points Joined March 2017
No special treatment, just keep the explanations clear. If there is any interest paid then creditors will have to show that in their income and assesse may use deduction under 80E.
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On 27 July 2017 at 10:45
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Student
187 Points Joined January 2012

what if the Client borrowed and the parents and sister say no need to return money ? In that scenario will it be treated as income of my Client ?

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On 27 July 2017 at 15:03
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1138 Points Joined March 2017
Not in my opinion. In that case it should be treated as a gift from close relatives.
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On 27 July 2017 at 15:17


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