I have taken a loan from a close friend to over come Covid related loss of income and also a loan on my LIC Insurance policy.
Should these be shown in the ITR-1 and are these amounts tax able. 3 lacs and 5 lacs respectively.
Loans from family members or friends are not taxable. Whether the loan is with or without interest, it becomes tax-free for the borrower.
So, there is no need to show it in ITR. But, if its huge lump sum amount then advisable to get formal agreement done (assuming the amounts are taken in non-cash mode).
Thanks for the feedback. Amount was 3.6 lacs. Any comment if still agreements etc have to be done..
Also if own brother agrees to lend some money to the tune of 7 lacs will it attract any tax and can it be shown as gift amount when transferred from abroad.
Advisable to keep a formal agreement done. In case, there is a ‘compliance notice’ by the IT dept, it comes handy.
Gift – No tax liability. But, you can show it in your ITR filing under exempted income.
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