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..

 

 
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practicing advocate

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


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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..

 
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 hello..

 

can some one please clarify

 

thank you

 
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