Income Tax on Loan Taken from Relatives

Income Tax Income from Capital Gains
1

I am taking Interest free Loan from sister and do i need to record in the ITR. If yes under which section of ITR 2 is to be recorded while filing. Kindly advice

2

Hello @Srikanth

Loans & Advances form a part of Balance Sheet.

Thus, if you do not have any Business Income in a financial year and you are filing ITR 2, you do not need to report the loan in ITR.

Also, if you had taken the loan on interest, the interest cannot be claimed against the capital gains. Interest on loan can be claimed as business expense only if the funds are used for trading purpose.

Thank you.

1 Like
3

Thank you sir. Greatly appreciated