Hi All,
if someone is a salaried employee with good amount savings every month and from that savings he is giving interest free unsecured loan to his friends/relatives and proprietership firms but parallel to that he is also taking home loan from SBI on interest.
Is this acceptable to Income tax department ? On one hand he is lending his money to someone without interest and on other hand he is raising loan from bank.
Let me know.
Regards,
Divya