Hi, if i borrow amount 13 lakh from friend on my account through rtgs or neft what i need to do, i need to pay tax for the amount ? i need to produce any document?
Hii
you don't required to pay any tax on such amount, show the same in your balance sheet as secured/unsecured loan and repay whenever you want to repay.
to avoid future litigation you can prepare a loan agreement between you and your friend mentioning period of loan, interest rate( if on interest) and other conditions or point which you discussed verbally.
If you take that as loan then it is not taxable. If that is not loan and income then the same is taxable.
For loan you need to obtain a letter that the same is provided to you as hand loan
No, you did not pay tax on loan amount as it is not income . this is loan amount which you received form your friend through RTGS or NEFT.
For documentation you did a loan agreement with your friend.
Income tax is charged on Income not loan.
Hello,
There is no need to pay any taxes if the amount is in the form of loan and will be returned in due course.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
No, it is liability receipt. If you have taken business loan, then you will get deduction for interest paid. If it's home loan then you will get it deduction from house property. For any other personal loan no deduction.
Hi,
If you borrow money from Banking channels, there is no need to pay any tax on the same.
However, it is advisable to execute a proper Loan Agreement so that you can prove that the money received is a Loan and not an Income in your hands.
Dear Sir,
You need not to pay any taxes if the amount is in the nature of loan which you will return in due course.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Yes. You need to have proper document to evidence that it is a loan, specifying the terms of repayment and interest, if any. Further, your friend should have enough resources to lend you money. Otherwise, the loan may be treated as unexplained cash credit and added to your income.
