20 December 2012
1)can my father give tax free loan to his son huf. 2) The loan taken by huf is invested in debentures where it is getting 18% return should HUF pay some nominal bank intersest of 8% to father to avoid clubbing provision. 3)Is there deed required to be done for loan on stamp paper or a declaration on plain papers will do.
20 December 2012
Clubbing provisions apply on transfer of income. As giving loan is not a transfer hence clubbing provision do not apply. secondely , you can take a loan @ 0% interest also. It is allowed. Thirdly, You should use the stamp paper so as to avoid any future issues.
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