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..

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

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..

 hello..

can some one please clarify

thank you