Yes .....HUF can give loan to its members .
However , if the loan is given out of borrowed funds , ensure that interets is charged , not less than the interest on borrowed funds .Ohterwise , interest on borrowed funds may be disallowed partly/wholly depending on the facts of the case.
Can a HUF take loan from its coparceners???
A HUF comprising of Husband, wife, son and one married daughter. The husband is the Karta.
Can this HUF receive loans from wife (a coparcener) and pay interest on the loan amount??
CAclubindia
