Gift in income tax.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2014 A interest free loan of Rs 50,000/= from my brother was being reflected in my BS since last 4 years.

Can I convert the loan in to Gift or

I shall return the loan by cheque and take a another cheque from my brother for making the same as Gift.

Which is the correct option ?

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)
Follow

11 September 2014 Brother covered under the definition of relative . So you can convert the loan into gift . For this purpose you required to get gift deed indicating that "my loan out standing as on ........ date had been gifted to my brother.