Unsecured loan from mother

Same Question , my uncle expired who had an unsecured loan in the firm and we have to transfer that amount to legal heir's name. How to report it under 3cd

Loan from the mother who passed away:

• The unsecured loan from your mother becomes part of her estate on her death. It's payable to her legal heirs (per will or succession). If you're one of the heirs, your share of the loan merges (you owe it to yourself, so effectively extinguished to that extent), and the balance is owed to the other heirs.

• If heirs waive the loan (gift), the waiver from relatives isn't taxable (Sec 56(2)(x)).

• In your books (if a business loan): transfer the loan balance to the heirs' names, or reduce it (capital or gift) for your share.

• No TDS issue on repayment of principal.