I have a old friend in Europe who is willing to give me loan for 5 years for personal purpose. Is it allowed? What will be tax implications?
8 Replies
My Elite Space
(8 Points)
Replied 21 February 2021
Yes, you are allowed to take loan in accordance with FEMA ACT.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 21 February 2021
Yes you are eligible as per procedure followed by FEMA act
dipen thakkar
(CA , CS , LLB)
(29 Points)
Replied 21 February 2021
Yes you are eligible for the loan
Josh
(Manager)
(124 Points)
Replied 23 February 2021
FEMA (Borrowing and Lending) Regulations, 2018 and RBI Master Direction - Borrowing and Lending transactions in Indian Rupee (INR) between Persons Resident in India and Non-Resident Indians / Persons of Indian Origin should help
anil jain
(Partner)
(1072 Points)
Replied 23 February 2021
2.1.1 Borrowing in INR by persons other than companies in India: A person resident in India, not being a company incorporated in India, may borrow in INR from NRIs/PIOs after satisfying the following terms and conditions:
-
Borrowing shall be only on a non-repatriation basis;
-
The amount of loan should be received either by inward remittance from outside India or by debit to NRE/NRO/FCNR(B)/NRNR/NRSR account of the lender, maintained with an authorised dealer or an authorised bank in India;
-
Period of loan shall not exceed 3 years;
-
Rate of interest on the loan shall not be more than two per cent above Bank Rate prevailing on the date of availment of loan;
-
Payment of interest and repayment of principal shall be made only to the NRO account of the lender.
anil jain
(Partner)
(1072 Points)
Replied 23 February 2021
2.1.1 Borrowing in INR by persons other than companies in India: A person resident in India, not being a company incorporated in India, may borrow in INR from NRIs/PIOs after satisfying the following terms and conditions:
-
Borrowing shall be only on a non-repatriation basis;
-
The amount of loan should be received either by inward remittance from outside India or by debit to NRE/NRO/FCNR(B)/NRNR/NRSR account of the lender, maintained with an authorised dealer or an authorised bank in India;
-
Period of loan shall not exceed 3 years;
-
Rate of interest on the loan shall not be more than two per cent above Bank Rate prevailing on the date of availment of loan;
-
Payment of interest and repayment of principal shall be made only to the NRO account of the lender.
Recent Topics
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
Related Threads
CAclubindia
