Soniya (asad) (247 Points)
16 November 2013I have a query. I am Runninag a partnership firm and I want to take loan from NRI who is my uncle. My uncle wants to gtransfer the funds from his NRO accounts to my Firm Account.
What will be the inocme tax and FEMA provisions and Compliace for this transaction?
Sudhag
(Chartered Accountant and Company Secretary. Visit at : www.taxpertpro.com)
(1231 Points)
Replied 22 November 2013
hi,
It is allowed. Subject to conditions such as (i) the loans shall be utilised only for meeting borrower's personal requirements and/ or business purpose and not for carrying on agricultural/ plantation activities or real estate business, or for relending, (ii) Regulations relating to margin and rate of interest as stipulated by the Reserve Bank from time to time shall be complied with and (iii) The usual norms and considerations as applicable in the case of advances to trade/industry shall be applicable for such loans/ facilities.
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