personal loan is taxable , if you buy a house for that amount

POSTED BY P Chandra ON January 4, 2012 12:47 pm COMMENTS (4)

Hi ,

Thanks for posting this kind of useful messages ,

I have taken 8 lacks loan to buy house from my would be father in law and he transferred the money to my Salary account, later I paid that money to my house owner,along with that I took additional loan of 30 lacks from bank. I have a plan to pay that amount installment wise whenever possible.

My query is : Whether that 8 lacks will be considered as my income for this financial year. to make it simple do I need to pay tax for that amount. How to show this amount in filing tax return.

Thanks
PC

4 replies on this article “personal loan is taxable , if you buy a house for that amount”

  1. Dominic Prakash says:
    January 5, 2012 at 3:37 pm

    In my planet 🙂 getting loan from “would be father in law” comes under different category and name. No need to show it in tax or pay back 🙂

    Reply
  2. ashal jauhari says:
    January 4, 2012 at 11:16 pm

    Dear P Chandra, as the transaction of 8L Rs. is classified as loan by you, it can’t be your income from other sources. Hence no tax on it at all.

    In case you are also paying some interest on this 8L Rs. amount to your FIL, the interest received from you ‘ll become his income & it ‘ll be taxed as per his usual slab.

    Thanks

    Ashal

    Reply
  3. Shree says:
    January 4, 2012 at 1:09 pm

    Hi,
    The Tax liability is nil on rs 8 lacs. Only you need to maintain proper documentation that you have taken amount as loan and repayment details in future. This will be useful at the time of query raised during income tax assessment.

    Reply
    1. P Chandra says:
      January 4, 2012 at 2:09 pm

      Do I need to show that amount as my “Other income”

      Reply

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