11 December 2020
i have a query about unsecured loan that one person say. mr. A has received unsecured loan of rs. 300000/- from another person (not being relative) say Mr. B. after that Mr. B has been passed away. How to settle that Unsecured loan amount in the books of Mr. A???? What is the Taxability in hand of both Person????
26 December 2020
It depends on agreement entered into. If there is not legal heirs for Mr. B then I think the entire loan amount should be treated as other income in the books of accounts of Mr. A and paid taxes accordingly.
CAclubindia
