Interest from Family Member
Hitesh rawal (402 Points)
10 April 2019
Is it necessary to pay interest on unsecured loan from Family members from Father mother or Brother.
Hitesh rawal (402 Points)
10 April 2019
Shloka Madhavan
(Teacher)
(301 Points)
Replied 11 April 2019
Not necessary, unless the same is likely to be treated as bifurcation of income.
kajol
(Executive)
(201 Points)
Replied 11 April 2019
The annual limit for tax-free gifts to individual family members is $14,000, so especially in situations where your loan is going to tip you beyond that point, the minimum interest you'll want to charge is the IRS Applicable Federal Rate. They're also significantly lower than interest rates a bank would charge
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
