Education loan taken by assesse, borrowed money from parents

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 !!

Replies (4)
No the loan taken won't be considered as income, neither the paybacks.
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.

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 ?

Not in my opinion. In that case it should be treated as a gift from close relatives.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details