Tax Implication on write off of Unsecured Loan liability, after death of loan borrower, vis-à-vis what would be tax Implication in the hand of lender.

Tax Implication on write off of Unsecured Loan liability, after death of loan borrower, vis-à-vis what would be tax Implication in the hand of lender. https://www.taxtmi.com/forum/issue?id=120037 Heirs are liable for the deceased borrower's unsecured loan only to the extent of assets inherited from the estate, and there is no separate tax liability in the borrower's hands after death. For the lender, an irrecoverable personal unsecured loan may amount to a loss but is generally not allowable as a deductible loss under income tax rules when the loan was not advanced in the course of business. en-us Thu, 22 May 2025 17:21:34 +0530 Thu, 22 May 2025 19:32:11 +0530 TaxTMI RSS Generator Tax Implication on write off of Unsecured Loan liability, after death of loan borrower, vis-à-vis what would be tax Implication in the hand of lender. https://www.taxtmi.com/forum/issue?id=120037 Heirs are liable for the deceased borrower's unsecured loan only to the extent of assets inherited from the estate, and there is no separate tax liability in the borrower's hands after death. For the lender, an irrecoverable personal unsecured loan may amount to a loss but is generally not allowable as a deductible loss under income tax rules when the loan was not advanced in the course of business. Discussion-Forum Income Tax Thu, 22 May 2025 17:21:34 +0530 https://www.taxtmi.com/forum/issue?id=120037