Hello
Unsecured loan has been taken from mother to his firm from last 3 years. Due to expenses of interest, one wants to convert this loan into gift. so that no interest implication ll be there. what will be procedure to this ?
What ll be income tax implications ?
thanks
If gift amount exceeds 50,000 in a year, it will be taxable under the head Other sources.
However, if gift is received from family member then it it will not be taxable in case of Individuals and HUF. Family members is defined under Income tax provisions. This exemption is available only to Individual and HUF
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