I took a personal loan to pay 10% for my brother's college fees to secure the seat, he would get loan for same in next 2-3 months. Can I use my brother's loan money to pay for the personal loan I took. Money from my siblings account will be taxable ?
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Tax on money received from siblings
Replies (11)
What do you want to know?
If my brother returns the money from his sanctioned loan, will that money be added to my income ?
A loan is never an income, regardless of who you got it from.
And whenever you're repaid, as far as your accounts are concerned, it doesn't matter where your brother (or anyone else) got the money from to pay you back. As long as the amount you got back is the same or less than what you lent there's nothing to worry about.
And in case you're not sure of the amounts, you can simply give the money as a gift and then you get it back as a gift. No tax implications on gifts between brothers.
Income Tax will be on income only not on each and every credit in bank account..
Loan is not an income.. Recovery of loan also not an income
Loan is not an income.. Recovery of loan also not an income
Loan you have taken is not your income. There is no tax on gift or any payment made among siblings.
Hence you will not be taxed even if you receive money from your brother a d repay your loan.
Hence you will not be taxed even if you receive money from your brother a d repay your loan.
Money received from your siblings account is not taxable
The money received from your brother will not be taxable in your hands.
You cannot use others loan to pay off your Lan.
Money received from your siblings account is not taxable..
So the Money received from sibling can be used for repayment of your loan.There is no restriction
So the Money received from sibling can be used for repayment of your loan.There is no restriction
| Originally posted by : sabyasachi mukherjee | ||
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You cannot use others loan to pay off your Lan. |  |
What nonsense!
Yes,you can use your brother's loan to pay your personal loan...It is not an income...And income tax would be levied on Income...Hence.it is not taxable
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