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T.M.Prabu

T.M.Prabu (Querist)
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05 December 2012

Dear sir,

whether or not chargeable to the tax in the following case?

the assessee is borrowed money from relatives as a loan for the amount of 22 lakh for construction of his house without interest.

1. If yes, what section to be covered?
2.If No, what is the reason?

Pankaj Gupta

Pankaj Gupta (Expert)
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05 December 2012 As loan is not a permanent transfer of money.
Hence clubbing provisions shall not apply.
Therefore income generated from such house property( whether rent or on sale ) shall not be clubbed and shall be taxable in the hands of assessee.