Interest free loan

HI Amit,

After a long time.......:)

IF YOU CAN PROVE THAT THE TRANSACTION IS INTHE NATURE OF "LOAN" & NOT "GIFT" THEN IT CANNOT BE ADDED TO THE INCOME.

Ways to prove -

1) Loan Agreement

2) Balance Sheets of Borrower as well as Lender.

3) Repayment in full or in part, will help you in proving that the transaction is of "Loan" (in the absence of above)

Thanks for the Valuable information Amir.