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 ?

 

Tax return has got nothing to do with a promissory note. e.g. question is that if you had 12 lakhs in your own account will you be paying tax return? If the answer is yes then it means that your friend will also be paying the tax return. However if initially you are not paying tax return then the same will apply to your friend. I hope this helps. KS Johal

Tax return has got nothing to do with a promissory note. e.g. question is that if you had 12 lakhs in your own account will you be paying tax return? If the answer is yes then it means that your friend will also be paying the tax return. However if initially you are not paying tax return then the same will apply to your friend. I hope this helps. KS Johal

 

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..