GIFT DEED

sp (Querist) 22 February 2010 This query is : Resolved
I HAVE TAKEN LOAN FROM MY NRI BROTHER.
IT IS DECLARED IN TAX RETURN TWO YEARS BACK.
CAN IT BE CONVERTED IN TO GIFT?
WHAT IS THE PROCEEDURE & WHAT DOCUMENT ARE REQUIRED?

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A V Vishal (Expert) 22 February 2010
You can convert the loan to a gift by asking your brother to execute a gift deed of money in your favour and notarize the same in his country of residence or alternately the doc can be apostilled at the Indian embassy at the country of his residence.

Raj Kumar Makkad (Expert) 22 February 2010
Its conversion as a gift is legal,

Kumar Thadhani (Expert) 23 February 2010
Yes Sir you can very well convert loan into gift by executing gift deed in your favour and thereby executing the gift deed through the consulate's office or country where your brother is residing.

Sivadas Chettur (Expert) 23 February 2010
you can convert the loan into gift.Income tax u/s 56 is also not attracted.You can also obtain a letter from brother confirming the gift.

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