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Lending money to a relative to repay the home loan

Tax queries 204 views 3 replies

Hi Experts..Please help me out in this. I have borrowed money from my relative( my father's sister) to repay the home loan. I am an employee of a registered company, so apart from filing the usual ITR, do I have to include this borrowed money as my income? Is there a way to exempt this money from income tax.No amount was lended or received by cash. It was carried out as banking transaction. Also, I am repaying the amount to my relative partially in parts(again banking transaction and not in cash). Let me know if I am supposed to declare the borrowed amount seperately to income tax dept? If yes, then what is the procedure of doing this?

Thanks in advance for all your great help!!

Replies (3)

When you are repaying the borrowed amount....... it is treated as loan, and hence it is not income, which should be taxed.  Get a confirmantion letter from the relative about the money given to you as loan.....

Thank you Dhirajlal ji . Understood!

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