• Taking interest-free loan from British citizen

HI,

I need to take interest free loan from a foreigner. I intend to use this amount to buy a house and pay back in about 10 years. The loan will be in British pounds about 60K.

What is the procedure to do this.
Asked 8 years ago in Income Tax

Dear Sir,

With respect to your quarry please find below answer :

As per prevailing RBI Policy Individual is not allowed to take loan from foreigner unless it is for personal purpose. It can be accepted in the form of Gift and later on you can reply it but in the nature of loan same shall not be permitted.

It will also attract issue in repayment of loan and interest payment.

For further details please free to contact me.

Thanks & Regards

CA Vishrut Shah

(+91-98214798534)

vishrut1303@gmail.com

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

Dear Sir,

Kindly note that it is into transaction not permitted by the RBI. Hence there is not much option to it. However you can contact your banker and can make a special case application to the RBI for it and they have power to allow the transaction base don it.

Thanks & Regards

CA Vishrut Shah

+91-9824798534

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

Hello Sir,

Considering your query it appears that you are planning to take a loan from a foreigner in Foreign Currency. Such a transaction is covered under FEMA Laws. You may visit your branch and discuss with them if they allow remittances of Foreign Currency.

Regards,

CA Rohit R Sharma

Mumbai.

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

You can take the same

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

No it will not be taxed.

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

You can take declaration from the British Citizen. It will not be taxed

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

In my view, you can take loan under RBI's automatic approval route for the loan proposed to be taken from the foreign citizen.

Loans from non relatives are not treated as income, provided the loan is genuine.

B Vijaya Kumar
CA, Hyderabad
1001 Answers
124 Consultations

5.0 on 5.0

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