27 October 2013
In General there is no specified rate of Interest defined under IT Act on loan from relatives or on unsecured loans... However, it depend upon the mutual agreement between them...
27 October 2013
you may even lend at 0%. It won't hit you unless the lender is having interest bearing borrowings and he/she is claiming deduction for the same in the p&l. In such cases, Income-tax department often disallows a portion of interest paid.
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