Interest paid on unsecured loan - q2

u can claim deduction of interest piad only when the amount received is used for your business purpose. If the amount received as loan is given to other person without any interets or at the interest rate below the rate on which u receive it, then the interest paid or differential interest, as the case may be, is disallowed.

Your article is helpful; But i want to know that " if the "X" person take loan from the "Y"(Friend of 'X')  person , then is there any benefit to Y for the loan given to the friend and wether the Interest on Loan is taxable to Y.