Lending money to son

Dear Experts,

  We are two brothers based in India. My mother is a widow and is based in India.

  My borther wants to buy property in Mumbai and wants to borrow money from my mother. He intends to return her money in due course of time.

 My questions are:

 1. What are the tax liablities for my mother when she borrows money to my brother?

 2. Can she claim tax rebates of any sort?

3. What is the best way to lend money for my mother? Gift deed?

Many thanks in advance!



If your mother lends money, it will bear an interest and that interest will be taxable in her hands. She cannot claim any rebate.

She can gift the maoney. It will attract no tax in her hands.

Any income out of the gift will be taxable in the hands of your brother.




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