Taxability of loan to brother

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.