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I have a doubt

Tax queries 202 views 4 replies

A person X saves 5 lakhs after paying all taxes in a 2018 - 2019 financial year

Now the person X gives a temporary loan of 1 lakh to person Y without any liability or interest.

The person Y pays back the 1 lakh to Person X in 2019 to 2020 financial year

Does the 1 lakh become a taxable income again for Person X in the 2019 - 2020 financial year?

Replies (4)
Not taxable...
no it is not taxable in the hands of X but both the parties have to made an affidavit that the first party gave 1 lakh RS loan to second party and after a specific time period second party return the same amount without any interest.
Yes... I agreed to Mr Radhey & Mr Aditya.,

Better to prepare any evidence...

not taxable     


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