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Tax liability on interest income that u borrowed from aon

Tax planning 140 views 7 replies

manish_s

34 Points Joined May 2020

Hi,

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.

Replies (7)

Mohammad Shakir (Shakir)

6 Points Joined December 2023

Gifts from specified relatives are exempted, regardless of the amount received. These relatives are spouse, father, mother, brother and sister

manish_s

34 Points Joined May 2020

Thank you so much for your reply. If I get money as gift from my son. Can I give it back? Is there any gift tax from father to son or son to father. Can I do it multiple times within financial year.