18 April 2010
my wife want to take Rs. 5 lacs as loan from my mother's brother without interest. can she take it and will it attract income tax or not. i have read judgement of ITAT Mumbai delivered on Jan 10, 2008.
19 April 2010
Interest free loan can be taken provided the person giving the loan is not taking a loan to pay you person i. e. it should be out interest free funds.
CAclubindia
