I am a senior citizen and had lent my sister Rs 1 lakh in 2014 which she is returning now. Is there any tax liability on this sum?
Rajesh Kanwal
Normally, any money received as repayment of loan is not treated as income and hence there is no tax liability on the sum that your sister is repaying you now. However, in future do prepare a note that could be furnished to the tax authorities in case there is any query regarding this transaction.
