Hi,
Can anyone clarify the tax implications for me on the following situations:
1) If I borrow money as a personal loan of Rs 10 lakhs from banks, on behalf of my brother for his business, then can I show the interest portion of the EMI, as deductions from my total income?
2) If my brother pays me the same amount of interest what I pay my bank, and also the principal i.e if he pays me the same EMI every month from his business income, would the interest received by me from my brother, be subject to tax?
3) If the EMI paid by me to bank and the EMI received from my brother by me, being equal - will I be allowed to show both as income and then as expenses or deductions? as they nullify each other.
Kindly respond.
Thanks
R
CAclubindia
