Interest payment

What is your business?

Is your business under audit?

One can provide interest free loan if they have so much capital but generally people pay interest just to claim expense and then take it back in cash.

There is no rate mentioned in income tax that needs to be paid.

If it's above 10000 don't pay in cash, if you are covered under audit.

If it stays with you for more than 3 years without any single payment and government comes to know about it they might treat it as your income and charge tax on same.

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Thank you

No gift tax on such receipt of car as it is not covered under section 56.

Hi,

It is not necessary to pay interest on the loan. However, the transaction seems more genuine when you pay interest on loan by bank.

Generally, considering the amount inbolved, the tax department will not challenge the loan as gift if your friend gives confirmation that it's loan.

Gift of car is not taxable. As car is out of the definition of property.

- Loan from mothers friend can be without interest. 

- Payment of interest in cash is not allowed.

- No it would not be treated as gift but there should be some stipulation for the repayment of the loan.

- Yes, car is taxable in your hands.

Hi,

-No, it is not compulsory to pay interest on loan.

-There is no rule for minimum rates. 

-No, it would not be treated as gift.

No, you will not be liable to pay any gift tax on car.

Hi

No its not compulsory to give Interest.

No ,it will be treated as Gift.It will stand as Unsecured loan in books of accounts. 

Yes you will be liable to pay tax on this transaction .

Hope it helps