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rajiv   02 October 2015

Tax angle

Hi..

If i give interest free loan for a period of 5 years to a freind using a promissory note for the amount of 12 lakhs for his personal use ..do i or my freind have to pay tax return for it ?

will a promissory note be enough ?

 

Thankl you..

 



Learning

 3 Replies

adv. rajeev ( rajoo ) (practicing advocate)     02 October 2015

You will have to declare it to the income tax.  It is taxable

1 Like

rajiv   02 October 2015

 

i thought loans to a freind were supposed to be tax free for both the lender and the borrower..if the loan was given interest free..

plz clarify..

rajiv   02 October 2015

 hello..

 

can some one please clarify

 

thank you


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