They could make some monetary gains that are not specified under income tax laws. Suppose you give a $100,000 personal loan to a relative staying abroad without charging any interest. The Income Tax Appellate Tribunal (ITAT), Mumbai, recently dealt with a similar case. It held that gains arising due to forex fluctuation when receiving repayment of a personal loan will not be taxable. The taxpayer explained that he had extended an interest-free personal loan to his cousin in Singapore.

Source: Mint May 30, 2021 16:07 UTC