Interest free loan ; minnimum interest to be charged on loan for my real brother or husband

This query is : Resolved

Maharishi Vidhya (Querist)
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06 July 2022 I want to give my brother a loan via BANK TRANSFER ; can i give him a loan without charging any interest ; or can my brother take a loan from his wife without interest ;

Plus will i have to get a loan agreement made if the loan is given via BANK

And IF NOT ; than what is the minnimum to minnimum interest rate which should be charged from my brother for the loan me or his wife giving him...

Pls help

Thanxx

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 July 2022 No need to charge any interest for loan given to relatives.
If you want to charge it is 12%.

Maharishi Vidhya

Maharishi Vidhya (Querist)
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07 July 2022 Thanx for the answer ; but is 12% the minnimum rate cant we give at an interest of 6% ; and if i didnt charge any interest from my brother so at the time of scrutiny will it be added to my income by AO ?? And if yes than at which rate will AO calculate the interest amount

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 July 2022 Don't charge any interest AO will not question.