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Query on Loan

13 June 2018

Dear All, please suggest what will be the problem if a son taking a Interest free loan from his father (both is individual not from business) instead of Gift.

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1 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 13 June 2018

No problem, but the transactions should be through banking channel .....

Only if the amount is invested by son to generate income, which if assessed as direct transfer of taxable income, the same would be added to income of father, if at higher tax bracket.