Income Tax on sum received from father

POSTED BY ashish ON September 11, 2012 10:50 am COMMENTS (2)

Dear friends,

For purchasing of a apartment, I am taking help of 5L from my father which probably i do not need to return(or atleast this is what I need to show to SBI for getting Home loan approved).

May i know if i get this money from my father(working), I need to pay Income tax on this?

Regards

ashish

 

 

 

2 replies on this article “Income Tax on sum received from father”

  1. ashish says:

    thnx Ashal.

  2. Dear Ashish, if you are treating this amount as a gift from your father to you, there is no tax liability either on you or your father.

    In case you want to treat this amount as a loan which you ‘ll return later on to your father along with some interest for that house purchase. You can claim that interest payment in your home loan tax benefit but in this case interest paid by you to your father ‘ll become his taxable income & he w’d have to pay tax on it.

    Please take your pick from the above. Gift or Loan from your father?

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today