pls help.
if a son has taken a personal loan frm his father and then later on if the loan is converted in to a gift by the father to son (i.e the loan is no longer repayable and Gift Declaration is executed) what are the tax implications of the above.
thanx in advance for replying
If it is proximity of blood (Relations) that loan can be treated as Gift. Eventhough it is from outside parties that should not exceed more than 50k
Only applicable to Individual and HUF
Any sum of money,aggregate value of which exceeds Rs.50,000 /- is received during the previous year wothout consideration, by an Individual or a HUF from any persons on or after 01.04.06 then the whole of the aggregate of such sum will be taxable.
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