I am planning to take a loan my Brother who is NRI living in USA. He will loan me an amount of 20 Lakhs rupees from his NRO account. These monies were mainly from his India investments. This will be repaid back at 5% interest by me. I will use this money to pay my daughter college education in Canada. I am retired Railways employee and need not file income taxes. Under the above circumstances, please can you let me know the tax implications for me from India tax perspective? What could be the maximum loan tenure? What are the tax implications to my Brother since he has to file both India and USA taxes. Any other advice in the matter will be highly appreciated.
Thank You
Sunder
CAclubindia
