Interest on borrowed capital from individual
This query is : Resolved
18 August 2013
Respected Sir,
If my wife borrow money from me to buy a shop or office and then she rent it, will interest paid to me will deductible from her rental income? What is the paperwork for me to lend money to her?
If my wife borrow money from me to buy a shop or office and then she rent it, will interest paid to me will deductible from her rental income? What is the paperwork for me to lend money to her?
18 August 2013
You issue a cheque and the entry should pass through the bank account. At the year end charge interest and claim the interest paid by your wife against rental income it is allowable. There should be some repayment of interest every year so that it looks like actual payment of interest on loan
24 August 2013
Is interest paid on loan taken from relatives is eligible for deduction in Income tax or loan taken from any financial institution or bank only is accepted for incometax deduction? What are the procedures and paper work to follow to borrow money from relatives?
25 August 2013
Interest from relatives also eligible for deduction. lender need to give the certificate of interest with their PAN numbers and purpose of loans
25 August 2013
Is there any agreement format which needs to be stamped with details or any other paperwork?
25 August 2013
loan agreement is need to be executed with the mention reason of loan. particularly lender need to show the interest income in their income tax returns
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