Taking hand loan rs.10 lakhs from fatherinlaw

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Dwaraka 1981

Dwaraka 1981 (Querist)
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03 November 2018 Hi
Pls. Help me.. I am a private employee. I am taking an hand loan from my father in-law of ra.10-12lakhs. what kind of documentation I have to get it done to come out of income tax obligation.

CA. Brijesh Baranwal

CA. Brijesh Baranwal (Expert)
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04 November 2018 Take the loan amount through bank and repay the same through bank only.

Rupesh Jain

Rupesh Jain (Expert)
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05 November 2018 make a loan agreement on stamp paper and also mention rate of interest, if any, or you have option for gift deed, if amount not to give back . and transaction through banking media.

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CA Suresh Jain

CA Suresh Jain (Expert)
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07 November 2018 The loan (more than 20k) not only from Father in law but from any person, should be taken by way of crossed account payee cheque. There is no need of an agreement on stamp paper. There should an exchange of communication showing that the amount has been remitted to you as loan mentioning rate of interest ( which could be NIL) and the tenure of the loan ( which could be indefinite or on demand etc.)