Tax liability on interest income that u borrowed from aon

manish_s (ap) (34 Points)

28 December 2023  


I have taken 10000 rs loan from my son. I have immediately loaned that money to borrower to earn higher interest. I understand that I need to pay tax on earned interest income. However, I want to understand, will my son has to pay tax on income that I earned by loaning money that I received from him. Also, how long I can keep that money before returning it to my son. I want to treat this money as loan and not gift as it will reduce my son's networth. Do you think instead of loan, I should treat it as gift. Will it be more beneficial. I want to be legally correct and earn more interest income on money that I receive from my son. Please suggest best approach to tackle this. Thank you.