How to declare loan repayment received in itr-2

ITR 415 views 5 replies

Bijo

65 Points Joined March 2012

I had given an interest free loan of Rs. 2 lakhs to a friend in 2013-14 through Cheque payment, which he returned in 2016-17 through an NEFT payment to me. To the best of my knowledge, this is a tax free income to both parties as this is a loan and not gift.

However, I am unclear how I should declare this in ITR-2 (I fill ITR-2 as I have short term capital gain from equities). Is "Others" section in Exempt Income under Schedule EI the right place to declare this Rs. 2 lakhs income?

Please provide your valuable inputs.

Replies (5)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Originally posted by : Bijo
	I had given an interest free loan of Rs. 2 lakhs to a friend in 2013-14 through Cheque payment, which he returned in 2016-17 through an NEFT payment to me. To the best of my knowledge, this is a tax free income to both parties as this is a loan and not gift. However, I am unclear how I should declare this in ITR-2 (I fill ITR-2 as I have short term capital gain from equities). Is "Others" section in Exempt Income under Schedule EI the right place to declare this Rs. 2 lakhs income? Please provide your valuable inputs.

Already You said above it Clearly. Don't be shown in ITR... Bcoz., It's your income by Previous Years....

neeraj gupta

1138 Points Joined March 2017

Technically it's not income, but just cash inflow due to your money being returned. important part is you should be able to produce records in case needed to clarify the same.

Bijo

65 Points Joined March 2012

Thank you for the response Mr. Raja and Mr. Neeraj.

Yes. I have the bank statements that can show the outflow in 2013-14 and the inflow in 2016-17 as both transcactions were through bank. Hope bank statements is sufficient evidence to prove this.