Freelancing
741 Points
Joined September 2009
There is no maximum limit on how much Interest you can charge or receive from relatives. neither there is Max Interest rate cap given.
Its just if u r giving Interest at a higher rate then that is prevailling in the Market,, in this case u have to disclose the reason.
In audit report we provide an statement of Related party transaction U/s 40A(2) as per Income Tax act, 1961.