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Loan to Friend: Tax Implications for 3 Lakh Transfer in 2023?

Yogendra

Yogendra Arora  |1 Answer  |Ask -

Tax Expert - Answered on Feb 11, 2025

Yogendra Arora is the founder of Y Arora Associates And Chartered Accountants, a tax consultancy firm based out of Kanpur.
He has over 11 years of experience in auditing and consultancy.
Before starting his own consultancy, Yogendra, a commerce graduate from CSJM University, Kanpur, worked with ICICI Bank and Indusind Bank as credit manager between 2013 and 2018.... more
Kanagaraj Question by Kanagaraj on Dec 24, 2024Hindi
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Hi sir, I transfered 3 lakhs to my friend in 2023 as loan through bank transfer. If he repay that without any interest in 2024, should I work income tax?

Ans: Hi,
If no income in transaction than there will be no income tax, as in your case no interest so no income tax leviable.
Happy to help - Thanks.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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