Loan liability

This query is : Resolved

Sujal Patel (Querist)
Follow

18 September 2011 Can i take a loan against any asset (house, share and securities, FD, etc) which in name of my family member and show that loan account in my books of accounts?

I mean does it matter as far as taxation dept is concerned to have a loan in your name with the asset against which loan is taken is in my family members name.

Thanks for the time.

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
Follow

18 September 2011 No it certainly does not matter.

There is no compulsion that the loan given to and the collateral should be of same person.

Even in most of the cases it happened that property mortgaged is in others name.

Now cheers

Message likes : 1 times

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

18 September 2011 Yes loan can be taken against the assets of other family members. Take their consent and pledge as third party collateral security. In this case the interest rate shall be higher

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!