Rate of interest of borrowed capital

CA Mukul Mittal (CA in practice) (384 Points)

02 August 2011  

Any one can tell me what would be the maximum rate of interest for the money borrowed from a relative for the construction or acquisition purpose? as there is no limit on deduction of interest on borrowed capital for construction/ acquisition on the property let out, whether the capital can be borrowed from a relative having income less than maximum exemption limit for tax planning purpose???