ONE PERSON (X) WANTS TO TAKE A UNSECURED LOAN FROM HIS FRIEND (Y) FOR PURCHASE OF CAR.
THE LOAN AMOUNT IS RS.4 LACS AND WILL BE TRANSFERRED BY A CROSSED CHEQUE.
IS IT POSSIBLE TO TAKE SUCH LOAN?
X - IS A SALARIED EMPLOYEE
Y - IS A BUSINESS MAN
1 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 05 August 2011
no bar to receive the loan, provided it would carry a notional interest on loan amount and Y will have to offer that interest for incometax computation in his returns.
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