26 January 2013
Dear Sir, My age is about 22 and I want to start a business, for which I need a initial capital of Rs. 8 lacs. For which I have to depend on my brother and father. Now please advise me I should get it in the form of gift or in the form of interest free loan. And what are the paper formalties I have to conduct for the same.
26 January 2013
If your brother's and father's income is taxable in lower slabs than you should take the money as loan on market rate of interest. By doing so you will also save your tax. If their income is in higher slabs than arrange the money as gift from them through a gift deed.
CAclubindia
