I've taken loan at 0% interrest from my friend for the payment of the flat EMI. I've to return the amount within 5 years.
What documents should I get in case not to attract the tax man.
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Loan from friend
Replies (3)
Dear Monu,
As I understood, you should collect only loan document. please write your problem in detail sothat i can help you. my email id is sachinagarwalcallb @ gmail.com
Monu, First you should take the loan either by A/c payee cheque or DD,
Secondly you should make a simple money bond on Rs 100/- stamp paper in your name for the formality purpose,
Thirdly your friend must have sufficient fund(accounted) for giving you the laon viz.. if he is a businessman he should account the same in Loans & deposits A/c etc.. Ofcourse he his SW Engineer or in such other professions then no such accounting is necessary..
If you have done all these then no need to worry about the IT guys..
Indu, Thanks for your advice.
Please suggest further can I make Simple Money Bond even if I got money from NRI friend through Western Union?
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