Tax on interest from family loan

This forum can advise on Litigation mattters.

Income Tax is a separate Act and you need professional tax consultant like a Chartered Accountant that can guide you properly.

You will be saving head aches  with IT authorities by spending few amounts on such professional advice

(What about inerest of Rs.3.6 lakh is it not an income , over the taxable limit ?  What is the source of income of your father, when he has advanced Rs.10 lakhs?)

Yes ur father lend 10 lakes; it must have documents. Interest is simple or cumulative? Lending authority must give ur father lawn clearance certificate. This so much amount should be taken by cheque from ur fathers friend. Since it is commingled from business documents so no problem.

10lacs is my father 's savings. He wanted to invest but his friend needed that money for his business so he lend him. We asked many CAs here but they all give diff replies. And many of them have no idea what tax applied on such interest so seeking help online

@susen nath yes my father paid him via cheque only. But the problem his his friend gave him interest in cash and now we don't want to keep this interest in cash and want to deposit in bank. So how much tax is applied on this?

It all depends on other income your father has and also his age. You could have appropriated interest accrueds each year if he had been filing ITR. Now the entire interest will have to be taken as income of this year and appropriate tax as per the slab is to be paid.

One cannot exact calculations without knowing full details. Better consult a Tax consultant