05 April 2013
I am having a home loan from axis bank. i took 13lacs INR from my father to partially repay it. wud i be liable for any income tax on 13lacs if i say i took interest free loan from my father to repay my home loan.
05 April 2013
In my view there is no income tax liability on the interest free loan you have borrowed from your father. Even if your father gifts you the amount it is not taxable in your hands
Guest
Guest
(Querist)
05 April 2013
Is legal documentation needed for proof of loan for any future requirements? In what case, be it me or my father shall not be liable to pay any income tax?
08 April 2013
There is no requirement of paperwork. I am assuming of course that your father has lent you the money from verifiable sources. To be on safe side you can execute a loan document laying out the terms and conditions, on which the money is lent, repayment schedule etc The situation as it is, would not bring on to you or your father, any tax liability
24 May 2013
First of all the loan taken by you from your father is tax paid income as your father paid the tax on it and then only he was in a position to lend you this money. Only confirmation of loan with PAN of your father is sufficient document.
As regards tax-ability of 13 lacs which you have repaid to your father where from you got this money to re-pay your father? You must have earned 13L and then only you have re-paid. The income which you have earned is liable for tax and not the loan amount
CAclubindia
