Have given a loan to brother. He pays interest @ 12% p.a. every month. Can I claim exemption u/s 56 as a gift in my hands from a brother? Or If I have to pay tax " as income from other sources"?
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Taxability of loan to brother
Replies (5)
If he is your own brother then u n him become relative and he can give u any sum of money as a gift
@ PRASHANT KAPRE.,
You deal the amount as loan and received interest... right...?!
But, You ask the Interest can be treated as gift...
How is it possible Dear...?
Your question is very well... Also the answer from Your side...
Think that view...
@ Mr Pawar.,
Which based reply by You dear...?
Is reply based on only one side...?
You deal the amount as loan and received interest... right...?!
But, You ask the Interest can be treated as gift...
How is it possible Dear...?
Your question is very well... Also the answer from Your side...
Think that view...
@ Mr Pawar.,
Which based reply by You dear...?
Is reply based on only one side...?
It is strange situation.
Your brother has to take finance on loan but he has money to give a gift !!!!
It would be better that you give a gift to your brother (instead of a loan) and as and when you require, your brother will give a gift to you.
Your brother has to take finance on loan but he has money to give a gift !!!!
It would be better that you give a gift to your brother (instead of a loan) and as and when you require, your brother will give a gift to you.
To write to clear you shold have given as loan to your brother and your brother will repay the loan when he pays back.So far as interest concerned you should should show 12% as income from other source or you may give interest free loan but show notional intere as income from other source.
Interest paid by your brother to you, cannot be treated as gift, because it is interest paid by him. One transaction can have only one nature, either treat the transaction as payment of interest, or treat the same as a gift.
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