Stamp Duty on Family Loan Agreement
2 years ago
I want to give a loan to a friend for some interest. I want to know if i can give such loan and take PDC’s as security?
Also, what should be the amount of stamp paper for the loan agreement in Delhi?
Is there any legal limitations i should be aware of before giving a friendly loan?
A.hello
Make sure you entered into an agreement with your friend before giving the loan. Also friendly loan are without interest and there is no provision to take interest charge on the same. If you give such loan charge interest on the same you'll also have to show it in your lender income tax return. You can absolutely give such loan and take PDC's as security.
you must sign the loan agreement on Rs.100 stamp paper in Delhi.
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Make sure you entered into an agreement with your friend before giving the loan. Also friendly loan are without interest and there is no provision to take interest charge on the same. If you give such loan charge interest on the same you'll also have to show it in your lender income tax return. You can absolutely give such loan and take PDC's as security.
you must sign the loan agreement on Rs.100 stamp paper in Delhi.
Please rate if you find this helpful
Thank You
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hello
Generally friendly loans are given without any stamp duty. In order to save your money you must form and agreement with your friend so that in case your friend refuses to refund your money you could have any proof to claim it. Also you have to obtain a licence in order to make business out of intrest coming from money you lended.
You could register the loan agreement on a Rs.100 stamp paper.
If you find this review helpful please rate.
Generally friendly loans are given without any stamp duty. In order to save your money you must form and agreement with your friend so that in case your friend refuses to refund your money you could have any proof to claim it. Also you have to obtain a licence in order to make business out of intrest coming from money you lended.
You could register the loan agreement on a Rs.100 stamp paper.
If you find this review helpful please rate.
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A.Dear Sir,
Please take PDCs and avoid taking any agreement and never share with him the xerox copy.
Please take PDCs and avoid taking any agreement and never share with him the xerox copy.
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A.Usually loans as such for (making interest in business sense) are not allowed and one has to obtain license to do so. So, beware. Friendly loans people do give and don't think too much about the formality and interest but at the same time if you do not have the agreement in place then you have the risk of losing out your money.
Remember, if you are considering this to be a commercial transaction then you need to pay the stamp duty as per the ad valorem that is the value of the loan amount if not then you can execute on a stamp paper of Rs. 100/- and later when required to file a case, if situation arise, then you can pay the rest as penalty.
You can take PDC as security.
Remember, if you are considering this to be a commercial transaction then you need to pay the stamp duty as per the ad valorem that is the value of the loan amount if not then you can execute on a stamp paper of Rs. 100/- and later when required to file a case, if situation arise, then you can pay the rest as penalty.
You can take PDC as security.
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