Hello Experts,
I have borrowed Rs. 25 Lacs from my father which he got from his retirement funds. I Have deposited this amount in my Home Loan OD account to save the intrest.
what income tax rules has to say about it and how the taxation would happen.
Thanks in advance
Tanveer
You should refer gift provisions of IT Act
do not show it as Borrowed Money/ Loan....MAKE A GIFT DEED AND SHOW THIS AMOUNT AS A GIFT FROM YOUR FATHER...ANY SUM OF MONEY RECEIVED AS A GIFT FROM RELATIVE SHALL BE EXEMPT
If it was not a retired funds as mentioned in original query,
how will be the consequences?
And if the funds are already tax paid income how it will be treat
with out mention as a gift fund.
@ Purnima Ji.
I was suggested to take such amount as gift from his father & then he can pay it for their outstanding loans.
I guess I was failed to communicate my point. As retirement income are already tax paid so no worry & also you can take it as loan then same has to be piad for outstading loans. At the end it will nothing but book adjustments.
thanx.
Hi All
BORROWAL cannot be treated as GIFT..only the amount gifted through a registered gift deed is gift...since the amount is deposited in home loan account, you can treat it as repayment of int and principal as per HL repayment sch...
CAclubindia
