0

I took home loan from PNBHFL of 20 lakhs. Due to various personal reasons (to clear my debts) I sold my house. I purchased it in August 2016 and sold it in January 2019. I sold it for 40 lakhs.

PNBHFL mentioned they will charge if 3% of prepayment charges if I transfer the same loan to another. So, I cleared the existing loan amount around 19 lakhs, by borrowing 11 lakhs from friends/relatives and 8 lakhs from buyer of my house. Is the money took from friends/relatives is taxable?

Out of 11 lakhs, I got 7 lakhs as cash from friends and I deposited to my account. How do I show this amount to fill income tax form?

Thanks.

  • When are you repaying the 11 lacs back to your friends? Are you paying any interest? – Dheer Jan 9 at 17:27
0

If you have taken the funds as Loan from your friends and have/will be paid/paying back. There is nothing to show on Income Tax returns. It is best to create a affidavit and notarize the same, just in case there is inquiry.

If you have taken the funds as gift, then this is taxable and you need to show this as additional income and will be taxed as per your tax brackets.

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Not the answer you're looking for? Browse other questions tagged or ask your own question.