My father got some amount after his retirement.He is thinking of two options.First one is to do fixed deposit in bank.Second one is to give that amount to his friend for interest more than bank FD.He has to show that interest amount in IT returns also.
Besides safety and security,is there any disadvantages of giving it to his friend in terms of tax deductions etc and one more thing is,Should his friend deduct TDS from the interest amount while transferring it to my father?
Please clarify.
CAclubindia
