Should debt be shown in it return

ITR 532 views 5 replies

if a person takes debt of say 40 Lakhs from his brother throug DD to pay to his mortgaged loan account, should that be shown in the IT return, if so as what?

Thanks in advance

Replies (5)

You don't have to show, since you have taken a loan from your brother. It is not your income.

if he has not owned business/ profission covered u/s 44ab , then same need not to disclose.

agree with above

Thanks for the replies, if you have time, i want to elaborate the case much longer and clearer could you even plz help me out there.

My mother got a house property as gift from her father many years ago. in recent past she had mortaged that property to a bank by being as a guarantor to a loan taken by one her known person. That person failed to repay the loan and as a result my mother has to do that. In this process to bring her property back from aution she took that payable amount from her brother at some interest and got the property demortgaged. Now to clear this debt and some other debts she has to sell that property.

Now if you have time, i have few questions on this case,

i) If she sells up the property, I hope since it is a gift for her, the sale amount as a whole  will be the capital gain amt and she is supposed to pay income tax @ 20% of the total sale amt. Is this correct?

ii)If she gets back the amount whatever paid for the bank on behalf of other, will that be again treated as her income or the debt what she made can be adjusted for it?

iii)If can be adjusted, then should she show that debt now in her return?

iv)Her brother got that money whatever adjusted through his salary savings and by closing few life insurance policies and some more amount by again taking debt from his friends which all landed in his account.
 Now as total credits in his account crossed 10 lakhs, should he have to show all that in his return?

Kindly assist.

Cost of property will be the cost to her father that can be indexed and reduced from sale consideration. On balance 20% tax


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