Loan to brother
Kabita Sen
(Querist) 27 June 2017
This query is : Resolved
My brother is a retired central govt pensioner and stays in a rented apartment.
Now he is trying for a housing loan but because of age the EMI is very high.
I have a business and I am also a Maths teacher. My husband retired as a managing director. I want to give him an interest free loan. I am a taxpayer.
How should I go about this?
Rajendra K Goyal
(Expert) 27 June 2017
Please discuss with local tax consultant / post your query on another forum CA club of India.
Kumar Doab
(Expert) 27 June 2017
If you trust and also if you want to secure the principle consult, in person a very able local senior counsel of unshakable repute and integrity specializing in civil/ITax matters.
Sankaranarayanan
(Expert) 27 June 2017
It's all your wills and fancy, no bare for giving loans to your brother, the only thing the loan amount should be transferred from your bank account to him and declare in your memo of return in income tax .If any query arises from IT then you have liable to answer the same manner .
Sudhir Kumar, Advocate
(Expert) 28 June 2017
Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.
Such loan is taken by a person:-
(i) Who lacks business sense and cannot raise funds out of his own business and suddenly wants to be rich.
(ii) who cannot raise bank loan because :-
Either
he himself is not creditworthy
Or
the purpose for which he seeks loan is illegal
or
the purpose for which he seeks loan is not at all commercially viable.
(iii) Who knows he can afford not to refund.
(iv) Who trusts his thick skin
(v) Who intends not to refund
(vi) Who has made fortification against action of refund.
So he has to find someone who can part with his money. SO he finds a lender near him (friend or relative)
Such loans are given by the persons :-
(i) Who has surplus money.
(ii) Who displays and boasts of such surplus money.
(iii) Who stupidly believe that there will be a refund.
(iv) Fails to realise as to why he alone (not bank) is being contacted for loan.
(v) Who has extreme trust on the debtor
(vi) who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.
Such loans are always given
(i) Without documentation.
(ii) Without witness
(iii) Without guarantor.
(iv) During cordial relations
Soon after giving such loan :-
(a) Relations are no more remain cordial
(b) Business started by such money (easy money belonging to other) invariably fails.
(c) Such loans always sink and not refunded.
(d) Person seeking such refund suffers at legal process.
(e) Person seeking such refund legally or by persualtion is socially criticised.
Sudhir Kumar, Advocate
(Expert) 28 June 2017
You can give money but expect no refund. This will save you from BP etc.
Kumar Doab
(Expert) 28 June 2017
Mahir Mahoday Sudhir Kumar ji dwara prayapat varnan se aap labhavanit ho sakte hain.
Aise gahan varnan ke uprant bhi agar koi aisi cheshta karna chahey to vah unka apna nirnay hai.
Apki nagri me Apne mahir , vidwaan, avam imaandar vakil sahib se charcha kar hi koi nirnay karenge to appko labh hoga.
Aapka shubh ho.
P. Venu
(Expert) 28 June 2017
There is no law which bars love and affection between siblings and any actin arsing therefrom.
Rajendra K Goyal
(Expert) 28 June 2017
Agree, Legally there is no bar to loan to brother without interest.
Dr J C Vashista
(Expert) 28 June 2017
Helping brother by a sister is great!!!
