Interest free loan

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....nterest free loan<br> Query (Issue) Started By: - cabhupendrashah Dated:- 21-8-2008 Last Reply Date:- 22-8-2008 Income Tax<br>Got 1 Reply<br>Income Tax<br>can interest free loan be added u/s 56[2][v] ....

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....? as any sum recd? Reply By dkkothari: The Reply: Any amount received as a loan is not a sum of money received without consideration. There is consideration by way of undertaking or promise for repa....

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....yment of loan on demand or after some time. Thus any loan whether with interest or without interest cannot be considered as income u/s 56 (2) (v). Loan is also a capital receipt and capital receipts c....

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....annot be brought to tax in view of purpsoes of the I.T.Act and also the authority under constitution of India, which only permit tax on incom. It is advisable to make a promissary note or Bill of Exch....

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....ange or post dated cheque can be given at the time of receipt of loan to make the matter beyound doubt.<br> Discussion Forum - Knowledge Sharing ....